Zero-Down VA Loans Up To $697,500 In San Diego County
Posted by Kevin Kueneke | Visited 1089 times, 1 so far today | Leave A Comment »
Continued good news from the recently passed Housing and Economic Recovery Act (HR 3221). The Veterans Administration (VA) has increased the VA guaranty amount. 
The VA will now guaranty up to 25% of the FHA one-unit high-cost county loan limit. This means that a veteran can borrow up to $697,500 in San Diego County with zero down payment. However, this $697,500 must include the VA Funding Fee (click here to see if funding fee is applicable). Effective January 1, 2009, the new VA zero-down loan limit will be 115% of the local area median home price which may be as high as $625,500.
You might ask then, through the end of the year, what is the maximum sales price in San Diego County? For a veteran with full entitlement and first time use of their guaranty, this equates to a sales price of about $682,800…with no money down! For reservists or national guard, the sales price would be about $681,100. If the veteran is exempt from paying the funding fee, then the sales price can be the full $697,500.
This is truly beneficial as it allows active duty servicemen, servicewomen, and veterans to purchase homes in high cost areas without having to come up with the standard down payment. Also, the mortgage interest rates are no longer set by VA so that the veteran can actually get a fair market rate. Keep in mind that the VA Funding Fee at these loan amounts is quite sizable since it is a percentage of the base loan. However, it is typically financed and can actually be paid by the seller.
Questions? Call me directly at (760)500-1919 or email me today to find out how much home you qualify for…it might be more than you think.
