What is VA Loan?
A VA mortgage is a loan that is either a fixed or adjustable rate loan that is substantially guaranteed by The Department of Veterans Affairs. This guarantee by the VA allows lenders to provide advantageous terms to borrowers.
A VA Mortgage requires no down payment or private mortgage insurance. VA loans also feature very competitive rates and terms. If you qualify for a VA loan, you can essentially purchase a home with very little, or in some cases no initial costs. For example, all funding fees are waived with a 10% Disability. The VA will allow loans up to a 100% of the appraised value. This VA Mortgage is essentially the only Federally guaranteed loan program where the loan to value (LTV) can be 100%. The VA specific appraised value form that an appraiser uses to submit to the VA is known as a Certificate of Reasonable Value (CRV). Although Escrow Impound Accounts are not required by The Department of Veterans Affairs, it is still the policy of many lenders to request that Escrow Impound Accounts be utilized for payment of property taxes and other costs related to a VA loan.
100% Home Financing (0% Down Payment):
The VA offers the benefit of 100% Home financing in order to assist veterans to save money and leverage purchasing power when buying a home. Take a look at the chart below to see how much the VA will finance up to for each county around The San Francisco Bay Area.
ALAMEDA | CALIFORNIA | 100% Financing up to $636,150 |
CONTRA COSTA | CALIFORNIA | 100% Financing up to $636,150 |
MARIN | CALIFORNIA | 100% Financing up to $636,150 |
MONTEREY | CALIFORNIA | 100% Financing up to $575,000 |
NAPA | CALIFORNIA | 100% Financing up to $636,150 |
SAN FRANCISCO | CALIFORNIA | 100% Financing up to $636,150 |
SAN MATEO | CALIFORNIA | 100% Financing up to $636,150 |
SANTA CLARA | CALIFORNIA | 100% Financing up to $636,150 |
SANTA CRUZ | CALIFORNIA | 100% Financing up to $636,150 |
SOLANO | CALIFORNIA | 100% Financing up to $431,250 |
SONOMA | CALIFORNIA | 100% Financing up to $595,700 |
Keep in mind that most lenders require a minimum credit score of 620. Another factor to keep in mind is that The VA Mortgage Guidelines specify that your Debt to Income Ratio (DTI) cannot exceed a 41% maximum. However, your debt to income will be determined based Residual Income which is the amount of funds left over after all required expenses within a given period (usually monthly) have been paid.
Take a look at the chart below to see how much 100% VA financing can save you on your down payment for each county located around The San Francisco Bay Area.
Department of Veterans Affairs 100% Financing (0% Down):
COUNTY | MAX LOAN AMOUNT | 5% DOWN | 10% DOWN | 20% DOWN |
ALAMEDA | $636,150 | SAVE $31,807.50 | SAVE $63,615.00 | SAVE $127,230.00 |
CONTRA COSTA | $636,150 | SAVE $31,807.50 | SAVE $63,615.00 | SAVE $127,230.00 |
MARIN | $636,150 | SAVE $31,807.50 | SAVE $63,615.00 | SAVE $127,230.00 |
MONTEREY | $575,000 | SAVE $28,750.00 | SAVE $57,500.00 | SAVE $115,000.00 |
NAPA | $636,150 | SAVE $31,807.50 | SAVE $63,615.00 | SAVE $127,230.00 |
SAN FRANCISCO | $636,150 | SAVE $31,807.50 | SAVE $63,615.00 | SAVE $127,230.00 |
SAN MATEO | $636,150 | SAVE $31,807.50 | SAVE $63,615.00 | SAVE $127,230.00 |
SANTA CLARA | $636,150 | SAVE $31,807.50 | SAVE $63,615.00 | SAVE $127,230.00 |
SANTA CRUZ | $636,150 | SAVE $31,807.50 | SAVE $63,615.00 | SAVE $127,230.00 |
SOLANO | $431,250 | SAVE $21,562.50 | SAVE $43,125.00 | SAVE $86,250.00 |
SONOMA | $595,700 | SAVE $29,785.00 | SAVE $59,570.00 | SAVE $119,140.00 |
Interest Rate Savings:
Because VA Mortgages are guaranteed by The Department of Veterans Affairs, the risk to lenders is substantially reduced. This typically results in considerable savings of between 0.5 to 1 percent when compared to conventional interest rates for borrowers. With the high value of homes in the San Francisco Bay Area, this amount can be quite sizable. Take a look at the chart below to see how much mortgage interest rate savings you can expect on the VA guarantee for a VA Loan in each county around The San Francisco Bay Area.
Interest Rate Savings by San Francisco Bay Area County on Guaranteed VA Loans:
COUNTY | MAX LOAN AMOUNT | .5% INTEREST SAVINGS | .75% INTEREST SAVINGS | 1.00%
INTEREST SAVINGS |
ALAMEDA | $636,150 | SAVE $3,180.75 | SAVE $4,771.12 | SAVE $6,361.50 |
CONTRA COSTA | $636,150 | SAVE $3,180.75 | SAVE $4,771.12 | SAVE $6,361.50 |
MARIN | $636,150 | SAVE $3,180.75 | SAVE $4,771.12 | SAVE $6,361.50 |
MONTEREY | $575,000 | SAVE $2,875.00 | SAVE $4,312.50 | SAVE $5,750.00 |
NAPA | $636,150 | SAVE $3,180.75 | SAVE $4,771.12 | SAVE $6,361.50 |
SAN FRANCISCO | $636,150 | SAVE $3,180.75 | SAVE $4,771.12 | SAVE $6,361.50 |
SAN MATEO | $636,150 | SAVE $3,180.75 | SAVE $4,771.12 | SAVE $6,361.50 |
SANTA CLARA | $636,150 | SAVE $3,180.75 | SAVE $4,771.12 | SAVE $6,361.50 |
SANTA CRUZ | $636,150 | SAVE $3,180.75 | SAVE $4,771.12 | SAVE $6,361.50 |
SOLANO | $431,250 | SAVE $2,156.25 | SAVE $3,234.38 | SAVE $4,312.50 |
SONOMA | $595,700 | SAVE $2,978.50 | SAVE $4,467.75 | SAVE $5,957.00 |
Monthly Private Mortgage Insurance (PMI) Savings:
Private Mortgage Insurance (PMI) is not required a VA loan because of the guarantee the VA provides on all VA Mortgages. This saves you thousands of dollars over the life of the mortgage. Normally, you would be required to pay for PMI on most conventional loans where the down payment is less than 20% in order to protect the lender from a default on the mortgage. The savings you gain on PMI allows you to reduce your monthly expenses, borrow more, and/or focus on building more equity in your home.
Take a look at the chart below to see how much the VA Mortgage Monthly PMI Savings will be for each county around The San Francisco Bay Area:
COUNTY | MAX LOAN AMOUNT | .3% MONTHLY PMI SAVINGS | .5% MONTHLY PMI SAVINGS | .75% MONTHLY PMI SAVINGS | 1.00% MONTHLY PMI SAVINGS | 1.50% MONTHLY PMI SAVINGS |
ALAMEDA | $636,150 | SAVE $159.00 | SAVE $265.06 | SAVE $397.59 | SAVE $530.12 | SAVE $808.605 |
CONTRA COSTA | $636,150 | SAVE $159.00 | SAVE $265.06 | SAVE $397.59 | SAVE $530.12 | SAVE $808.605 |
MARIN | $636,150 | SAVE $159.00 | SAVE $265.06 | SAVE $397.59 | SAVE $530.12 | SAVE $808.605 |
MONTEREY | $575,000 | SAVE $143.75 | SAVE $2,875.00 | SAVE $359.38 | SAVE $479.16 | SAVE $718.74 |
NAPA | $636,150 | SAVE $159.00 | SAVE $265.06 | SAVE $397.59 | SAVE $530.12 | SAVE $808.605 |
SAN FRANCISCO | $636,150 | SAVE $159.00 | SAVE $265.06 | SAVE $397.59 | SAVE $530.12 | SAVE $808.605 |
SAN MATEO | $636,150 | SAVE $159.00 | SAVE $265.06 | SAVE $397.59 | SAVE $530.12 | SAVE $808.605 |
SANTA CLARA | $636,150 | SAVE $159.00 | SAVE $265.06 | SAVE $397.59 | SAVE $530.12 | SAVE $808.605 |
SANTA CRUZ | $636,150 | SAVE $159.00 | SAVE $265.06 | SAVE $397.59 | SAVE $530.12 | SAVE $808.605 |
SOLANO | $431,250 | SAVE $107.81 | SAVE $179.69 | SAVE $269.54 | SAVE $359.38 | SAVE $539.07 |
SONOMA | $595,700 | SAVE $148.93 | SAVE $248.21 | SAVE $372.32 | SAVE $496.42 | SAVE $744.63 |
Here are a few other things to keep in mind about what you also receive from a VA Mortgage:
Basic Allowance for Housing (BAH):
If you are an active military member, another significant benefit you will receive as a qualified borrower for a VA loan include the ability to apply your Basic Allowance for Housing (BAH) as income towards some or all of your mortgage payment.
No Prepayment Penalty:
Unlike many other loans, VA Mortgages do not have a Prepayment Penalty. This provides maximum decision making freedom and flexibility for borrows with regards to future refinancing or home purchasing choices.
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Featured Loans
Below are some of the types of loans available to you through our lender network.
Fannie & Freddie Eligible
Conventional Loans
The classic low cost home funding option. Available in both fixed and adjustable rate plans.
Ginnie Mae Eligible
FHA Loans
The Federal Housing Administration (FHA), is a U.S. government agency that provides financing options that only require a minimum of a 3.5% down payment. FHA (203H) Disaster Loans however are eligible for 100% Financing.
Luxury Properties
Jumbo Loans
Today, many homes require loans that exceed conforming loan limit amounts. Jumbo loans are a popular way to secure financing that exceed certain limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, a jumbo loan is not eligible to be purchased guaranteed or securitized by Fannie Mae or Freddie Mac.
Government Programs
VA Loans
The United States Veterans Administration (VA) provides up to 100% financing for homes as a benefit to veterans.
Government Programs
USDA Loans
The U.S. Department of Agriculture’s (USDA) Rural Development Guaranteed Housing Loan program offer loans with up to 100% financing at rates below market and reduced mortgage insurance premiums with low credit score requirements.
Elder/Senior Loans
Reverse Loans
A reverse mortgage or Home Equity Conversion Mortgage (HECM) is a type of home loan for older homeowners (62 years or older) that does not require the borrower to make monthly mortgage payments.
Portfolio Programs
Private Equity Loans
Private Equity loans are based on the equity value of the property being put up for collateral and not necessarily on a borrower’s credit rating. This type of mortgage is a very useful for certain types of sophisticated borrowers such as those with multiple investment properties
Tam Funding.
Tam Funding is a licensed broker under the CA Dept. Real Estate: 02009074. Broker of Record NMLS : 1403204. Corporate NMLS: 1829222. CA Dept. Insurance: OL88065.
Borrower Conditional Approval is issued only when lender underwriting supplies a written clearance to do so. Borrower Conditional Approvals are conditional, not guaranteed and subject to lender review of all borrower information. The final funding of the loan is dependent upon all borrower conditions being met. Rates indicated are subject to market changes and may only be available to certain qualified borrowers. Tam Funding is an Equal Opportunity Real Estate, Mortgage & Insurance Broker
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