Unlocking Luxury: Buying a High-Value Home with a VA Mortgage

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.