Monthly Archives: October 2019

Are you a veteran eyeing a luxurious residence in regions with soaring real estate prices, such as Los Angeles or Orange County? Well, the horizon of possibilities has widened! The VA has announced a game-changing modification: come January 2020, county loan limits are vanishing. Let’s delve into how this impacts your ability to invest in a high-end property.

The Million-Dollar Question: Can I afford a mansion with a VA mortgage?

Affirmative. Eliminating county loan caps means you’re still tethered to the previous $726,525 No Down Payment VA loan limit. This paves the way for you to:

• Dive into a Diverse Market: If your income supports the price tag of a $1 million or $2 million home, the illustrious neighborhoods of Los Angeles and Orange County, brimming with luxury, are now within your grasp.
• Embrace Multi-Unit Properties: While your VA loan mandates that the property is your primary residence, it doesn’t restrict you to single-family homes. Think multi-family. Visualize a property with four units; you reside in one while the others get rented out, ensuring a consistent income stream.

Noteworthy VA Mortgage Changes in 2020:

• Adjusted VA Funding Fee: Opting to utilize your VA home loan benefit for the inaugural time? The VA funding fee will be 2.3% of the loan amount. However, the fee jumps to 3.6% if it’s repeated usage.
• Uniformity for All Service Members: National Guard or Reserves? You’ll now be on par with other service members, incurring the same fees during the first usage.
• A Gesture for the Purple-Hearted: Active-duty personnel honored with a Purple Heart are exempt from the funding fee starting January 2020. This is in addition to veterans with a disability rating of ten percent or more and those receiving disability payouts who are already exempt.

To all the veterans in California, especially those in regions like Los Angeles and Orange County, the dream of owning a plush property is achievable and made substantially more accessible with the recent VA modifications. As a Certified Veteran Loan Specialist, we are poised to guide you, evaluate your eligibility, and lay out a pathway for you to walk into the luxurious realms of multi-million-dollar properties.

Picture this: You’ve just won a game, but you leave some behind instead of claiming all your winnings. It doesn’t make sense, right? Similarly, you may do that if you possess an older VA loan with a steeper interest rate. Your ticket to reclaiming those savings is the VA Interest Rate Reduction Refinance Loan (IRRRL).

Benefits of VA IRRRL:

• Streamlined Savings: Refinancing can significantly lower your monthly mortgage payments. With a reduced interest rate, the total savings over the lifespan of your loan could be substantial.
• Fixed Payments: Converting variable payments to one constant payment throughout your loan brings consistency and predictability to your finances.
• Zero Out-of-Pocket Costs: Often called a “streamlined VA loan,” VA IRRRL allows you to roll all your costs into the new loan. The VA funding fee can be integrated into the loan or settled in cash.
• Energy Efficiency Improvements: While direct cash-outs aren’t permissible with the IRRRL, you can include payments for energy-efficient upgrades to your home, up to $6,000.
• Shorten Your Loan Term: Swap your 30-year VA mortgage for a 15-year term. While this might increase monthly payments, the overall interest paid shrinks considerably.

Ideal Scenarios for VA IRRRL:

• Lower Interest Rates: If your current VA home loan’s interest rate is noticeably higher than current market rates, the IRRRL is a no-brainer. Switch to a new, more favorable rate and witness the monthly savings.
• Loan Term Options: Go long with a 30-year mortgage to diminish monthly costs, or opt for a 15-year mortgage to slash total interest over the loan’s life.
• Seeking Expertise: Consult a Certified Veteran Loan Specialist (CVLS) to navigate your options. If there’s a potential reduction of at least 0.5% in your interest rate, it’s a venture worth exploring.
• Refinancing Without Cash-Out: If you’re not seeking to pull any cash out and the primary objective is to save money, the process is generally more straightforward, and the approval rate is high.

In essence, if there’s an opportunity to improve upon your existing VA home loan terms, why not seize it? Especially when the process is made seamless with the VA IRRRL. Let dedicated specialists, such as those at California Platinum Loans, guide you to optimized financial savings.