If you’re a veteran, active-duty military service member, or the eligible surviving spouse of a veteran who is looking to buy a home in Santa Clarita, you may have heard about VA loans.
VA loans are powerful mortgage options that are designed to make homeownership more affordable for those who have served our country.
But how do you qualify for a VA loan, and how do you secure one?
Peregrine Financial's team of expert mortgage lenders have all the tips for qualifying for a VA loan in Santa Clarita, CA.
What is a VA Loan?
A VA loan is a mortgage loan guaranteed by the United States Department of Veterans Affairs (VA) and is available to eligible veterans, active-duty military personnel, and surviving spouses. Veterans can put 0% of the purchase price as a down payment and only pay for closing costs at the time of home purchase. VA loans also charge a funding fee that may be waived depending on a Veteran’s disability rating.
A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs (VA). Unlike conventional loans, VA loans come with no down payment requirement, no private mortgage insurance (PMI), and competitive interest rates.
Who is Eligible for a VA Loan?
To qualify for a VA loan, you must meet at least one of the following service requirements:
Active-Duty Service Members: There are minimum service requirements; someone must have served at least 90 consecutive days during wartime, or 181 days during peacetime.
Veterans: Must meet the minimum active-duty service requirements based on when they served.
National Guard and Reserve Members: Must have served at least six years or been activated for at least 90 days under Title 10 orders.
Surviving Spouses: If your spouse died in the line of duty, or from a service-related disability, you may meet the VA loan requirements.
Have a VA Home Loan Certificate (which usually stipulates any of the above is true).
Step-by-Step Guide to Qualifying for a VA Loan
Let’s dive into how you can actually qualify and get a VA loan in Santa Clarita.
Step 1: Obtain Your Certificate of Eligibility (COE)
The Certificate of Eligibility (COE) is a crucial document that proves to lenders that you qualify for a VA loan. You can obtain your COE through:
The VA eBenefits portal or VA regional loan center.
Your VA-approved mortgage lender (the VA loan lenders at Peregrine Financial can help you get this quickly!)
Mailing a completed VA Form 26-1880 to the VA
Step 2: Check Your Credit Score
One of the great things about VA loans is that they don’t have a strict minimum credit score requirement. However, a credit score of at least 620 is great. If your score is lower, we can work together to improve it before applying.
Step 3: Evaluate Your Debt-to-Income (DTI) Ratio
Your debt-to-income ratio (DTI) helps lenders determine how much mortgage you can afford. While the VA doesn’t set a strict limit, having a DTI of 41% or lower is preferred. If your DTI is higher, don’t worry, we can help. Our VA mortgage loan experts can look into certain compensating factors, like strong credit or significant savings, which may still help you qualify.
Step 4: Meet the VA Loan Property Requirements
VA loans are intended for primary residences only. You must move into the home within 60 days of closing and plan to live there full-time. If you’re deployed, exceptions may apply.
Step 5: Work with a VA-Approved Lender
Not all lenders are experienced with VA loans, so it’s important to work with a VA-approved lender (like us!) who understands the process and can guide you smoothly through your home-buying journey. The lenders at Peregrine Financial have helped hundred of families buy homes in Santa Clarita.
Step 6: Get Pre-Approved
Getting pre-approved gives you a clear picture of how much home you can afford. A pre-approval letter also shows sellers that you’re a serious buyer, which is essential in a competitive market like Santa Clarita.
Step 7: Find Your Dream Home & Make an Offer
Once you’re pre-approved, you can start house hunting! Work with a real estate agent experienced in VA loans - we have one in-house who can help! - to find a home that meets both your needs and the VA’s property requirements.
Step 8: VA Appraisal & Underwriting
Before your loan is finalized, the home will need a VA appraisal to ensure it meets the VA’s Minimum Property Requirements. We'll review your financials during underwriting to make sure everything checks out.
Step 9: Close on Your Home
Once the appraisal and underwriting are complete, you’re ready to close on your home! VA loans have lower closing costs compared to other mortgage types, which makes the process even more affordable.
VA Loan Limits in Santa Clarita, CA
As of 2024, there is was not a VA loan limit, meaning you can buy a home without a down payment regardless of the purchase price (as long as you qualify). However, loan limits may apply if you already have an existing VA loan.
Why Choose a VA Loan?
VA loans come with some incredible benefits:
No down payment required
No private mortgage insurance (PMI)
Lower interest rates
Flexible credit and income requirements
No prepayment penalties
Lower closing costs
Common VA Loan Myths (Debunked!)
- Myth: VA loans take too long to close.- Truth: With an experienced lender at Peregrine Financial, VA loans can close just as fast as conventional loans.
- Myth: You can only use a VA loan once.- Truth: You can use your VA loan benefit multiple times throughout your life!
- Myth: VA loans are only for first-time homebuyers.- Truth: VA loans are available for any eligible veteran, regardless of whether it’s your first or fifth home.
Reach out to Us
If you’re eligible for a VA loan and looking to buy a home in Santa Clarita, this could be the perfect mortgage option for you. With zero down payment, no PMI, and competitive rates, VA loans offer an unbeatable path to homeownership.
If you have questions about VA loan eligibility or are ready to start the home-buying process, reach out to a local VA-approved mortgage lender (like Peregrine Financial). We’d love to help you find your dream home!
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