The High Loan limits for VA 100% financing offered to Orange County, CA VA eligible home buyers have been very advantageous in in 2009 and 2010. The 100% financing limit for VA loans in Orange County was lowered from $737,500 in 2009 to $593,750 in 2010. *In 2011 the VA 100% limit was raised to $700,000 in Orange County. There is currently no other type of financing that offers $0 down anywhere near the price range of $700,000. *Updated April 23, 2011
California has the largest population of U.S. Vet’s in the country. Orange County also has a very large population of Veterans, who are eligible to take advantage of the VA 100% loan program. A few years ago, pre-2007, there were all kinds of ways for someone to purchase a home with $0 down. Now, everything has tightened. While the FHA loan program offers an excellent way for Orange County home buyers to purchase a property with only 3.5% down payment up to a loan amount of $729,750, there is not a 100% financing program besides the VA loan program.
Besides offering 100% financing, which is a great advantage over any other program, the VA loan program also has no Monthly Mortgage Insurance. Depending on the loan amount, this can save an Orange County Veteran quite a bit of money on a monthly basis. For example, an FHA loan of $500,000, at 96.5% loan to value, would have a Monthly Mortgage Insurance payment of $479. (1.15% x $500,000 / 12 = $229)*. An Orange County VA loan borrower would not have that fee, which is a savings of $2,750 on an annual basis. *Updated April 23, 2011
It is important to note that there is a difference between the VA and CalVet home loan programs.
VA also is fairly flexible with a borrowers debt to income ratios and credit. While Conventional financing (Fannie Mae and Freddie Mac) penalize borrowers for FICO scores that drop below 700, most VA lenders will allow FICO scores as low as 620.
It is possible to purchase an Orange County home for a price higher than the 100% limit of $700,000. However, a down payment would be required. The down payment is equal to 25% of the difference between the VA loan limit and the purchase price. For example, if an Orange County home buyer using VA financing purchases a home for $800,000 ($100,000 greater than the 100% financing limit), a down payment of $25,000 would be required. ($800,000 – $700,000 = $100,000, then multiply by 25%) . That is a down payment of only 3.1%. Great deal. VA will even lend on $1,000,000 homes at a much higher loan to value than what cold be found for a typical Jumbo loan in Orange County. VA loan amounts over the 100% county limit are known as Jumbo VA Loans.
With the First Time Buyer Tax Credit of $8,000 still available for buyers entering escrow by April 30, 2010, and programs like the VA 100% program available, there has not been a better time to buy a home in Orange County in years. The first step is to talk to an Orange County Direct VA Lender, get Prequalified, and then PreApproved.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Trust One Mortgage for more information about an Orange County, CA home loan. 877-786-4243 x 7.
www.OCFHALoans.com – California VA loan direct lender
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Trust One Mortgage Corporation is licensed and supervised by the California Department of Real Estate (“DRE”), License # 01087829
*This is not an offer to lend. 
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