Orange County FHA & VA Loans
FHA and VA loans are the most popular government-insured loans. FHA loans come with lower down payments, affordable interest rates, and easier credit score requirements. If you’re a current or former military member or a surviving spouse, you may be able to buy a home with no money down using a VA loan.
FHA home loans are backed by the government and insured by the Federal Housing Administration. They can be used to purchase a home or refinance an existing mortgage. Also, if you’re eyeing a property that isn’t exactly perfect, you can add renovation costs to an FHA loan. Here are more reasons why FHA loans are attractive to prospective homebuyers:
- Easier credit and debt-to-income qualification
- Down payment as low as 3.5 percent
- Affordable interest rates
- No income limits
- Gift funds accepted for the down payment
VA home loans are available to qualifying active military service members and veterans and their surviving spouses. Private lenders issue VA loans backed by the U.S. Department of Veterans Affairs, which sets the qualifying standards and terms. VA loans come with great benefits that include:
- No down payment
- No mortgage insurance
- Competitive interest rates
- Relaxed credit requirements
- No prepayment penalties
Here are the main criteria you’ll need to meet to qualify for an FHA loan:
- A credit score of 500 or higher
- A debt-to-income ratio of 43% or less; however, debt-to-income ratios as high as 55% are possible
- A minimum down payment of 3.5%
- You must have a steady income and proof of employment
Every year, the FHA sets loan limits for FHA-backed loans and they base them on the average home price for the area. The limit is 115% of the median home price, or in some cases 150% if it's in a high-cost area.
TThe limits fluctuate and you can check them at any time by visiting the U.S. Department of Housing and Urban Development’s FHA Mortgage Limits lookup page.
You can, although there is a waiting period that FHA guidelines require:
- Chapter 13: You can apply for an FHA loan after one yearr
- Chapter 7: You can apply for an FHA loan after two years
Here are the main criteria you’ll need to meet to qualify for a VA loan:
You must meet at least one of the following criteria:
- Served 181 days of active service during peacetime, or
- Served 90 consecutive days of active service during wartime, or
- Served more than six years with the National Guard or Reserves, or
- Are the spouse of a service member who died in the line of duty or as the result of a disability connected to their military service
- For all borrowers: A Certificate of Eligibility (COE) that shows you’re eligible for a VA loan
- If you’re active military: Statement of Service letter that verifies your employment with the military
- If you’re a veteran: DD Form 214, which is your Certificate of Release or Discharge from Active Duty
- If you’re a surviving spouse who receives dependency benefits: VA form 26-1817
- If you’re a surviving spouse who does not receive dependency benefits: VA form 21P-534
- The property you buy must be your primary residence
- Credit and debt-to-income requirements are more lenient and will vary by lender
Every VA loan requires that you pay a one-time payment to the Department of Veterans Affairs, which supports the VA home loan program.
The VA funding fee ranges between 0.5 and 3.6 percent of your loan amount and can be rolled into your mortgage.
There is an exemption for eligible borrowers who have a VA-approved disability related to their military service, have received a Purple Heart, or are a surviving spouse.
No situation is too complex
With a real estate attorney at the helm, there is no situation that is too unique or complex for us to handle. Our highly trained team specializes in complex loans.
We’re also real estate attorneys
Nikkael Home Loans is owned and operated by attorneys who know how to work through challenging matters to find the best solution for you.
There’s no pressure
We won’t sell you on a loan—instead, we will educate and inform you about the best options to match your needs.
I was extremely impressed with your handling of the loan – I don’t say that very often. Thanks again.
We are very grateful to have you as our broker, you have helped us a lot and done a great job from the very beginning.
You did a wonderful job, I don’t think anyone else would have taken the time and put in the effort to get my loan closed.
For homeowners 55 and older who want to borrow part of their home's equity as tax-free income. You can use the money to pay off debt, make some home improvements, or pay for long-term care.
Lock in a lower interest rate, reduce your monthly mortgage payment, improve terms, put cash in your pocket—these are all great reasons to refinance your home loan and get a new and improved mortgage.
Qualify for a home loan when you have a non-traditional source of income or a low credit score—perfect if you’re self-employed, have asset or bank statements, or are a professional (i.e., a doctor or lawyer).
When a typical home loan isn’t your best choice, perhaps due to a low credit score or high debt-to-income ratio, we can help you get a private, or hard money, loan.
Considering an FHA or VA Home Loan?
We’re experts in FHA and VA loans in Orange County, and we’re armed with answers to all your questions. Contact us today!