VA Loans and the VA Funding Fee

Posted March 13th, 2012 by admin

When you purchase a home with a VA loan, the VA charges a one-time fee in order to insure your loan without a monthly mortgage premium.
This one-time fee is known as the “VA Funding Fee”. It has changed over the years, but right now the funding fee is at 2.15% of the loan amount. The Funding fee may be waived or reduced if the veteran is disabled in active duty.
What this means to you:
The VA Funding Fee may be financed into the loan so that you do not have to pay it at closing. That being said, your monthly payments will increase due to the funding fee being bundled into the loan since it increases the total loan amount will increase as a result. Even with the increased monthly payments due to a higher loan amount, you will still be saving A LOT of money compared to comparable loan products. Currently, the FHA will insure loans with a minimum of 3.5% down. The VA will insure a mortgage with 0% down. The FHA has a monthly premium of 1.15% annually for a MINIMUM of 5 years. Not the case with VA. With a VA mortgage you have NO MORTGAGE INSURANCE TO PAY!

Text the word “info” to 858-876-SDVA (7382) for more information.

How Do I Apply for a San Diego VA Loan?

Posted February 23rd, 2011 by admin

If you are interested in applying for a VA Loan, simply click the secure VA Loan application link on the right.
Once the application is filled out, you will need to provide income, asset, and VA eligibility documents in order to process your loan.  
An officer will contact you once the application is submitted to help you along.  If you have any questions regarding the status of your VA Loan, please contact us at (858) 876-SDVA  Monday through Friday 9am-5pm. or email us at

Is a Zero Down VA Loan Right for Me?

Posted February 18th, 2011 by admin
While a 0% Down Payment Loan might sound like a wonderful idea at first glance, a lot of San Diego home buyers might want to think twice before deciding not to add to the pot before going into a home purchase.
San Diego Real Estate has and always will be expensive.  With the best weather in the United states, beautiful beaches, a cosmopolitan downtown,  rugged natural attractions, SeaWorld and the world famous San Diego Zoo, it’s not surprising that there would be a significant premium for property located in “America’s Finest City”.
That being said, a veteran who uses their VA Loan benefit to purchase a home in San Diego for the median price of $200,250 with zero down, the veteran would only be able to purchase a single bedroom home.  If the Veteran saved some money, they would be able to afford (with the same mortgage terms) a two or three bedroom property at $257,000.
The difference between the two houses is not merely square footage and the obvious number of bedrooms:

1. Crime and Neighborhood Statistics:
One bedroom homes tend to be located in lower income demographic areas in San Diego.  High correlations between lower income neighborhoods and crime is an important factor in establishing where you want to live.

2. Cost of Outgrowing:
Although agents and realtors may want you to think that the process of buying and selling a home is inexpensive and easy, the contrary is true- especially in today’s ill tempered housing market.  The average real estate commission is 3% per side of transaction.  What that means is that when you are ready to sell your home, you will have to pay a total of 6% as the seller to cover agent commissions not including any seller incurred concessions which could add up significantly when determining the final “takehome” from your home sale.  By purchasing a 2 or 3 bedroom, you will save yourself time and money in the long-run by allowing you room to grow.

3. Roommates: Nothing beats living rent/mortgage free.   If you have an extra bedroom or two, you may be able to have a few roommates to help cover the mortgage and put a few extra dollars in your pocket.  Heck, the way rents prices are going, you may even be able to cover the entire mortgage!
4. Resale Value: Market analysis shows that 3 bedroom homes outpace 1 and 2 bedroom homes in appreciation.  The latest figures by Trulia show that 3 bedroom houses rose in value 4% vs its 1 and 2 bedroom counterparts, which both lost annual appreciation by 6% and 3% respectively. (See below)

No. Bedrooms Nov – Jan ’11 y-o-y 3 months prior 1 year prior 5 years prior
1 bedroom $181,250 -6.3% $175,000 $193,500 $343,500
2 bedrooms $257,000 -3.0% $259,646 $265,000 $430,000
3 bedrooms $360,000 +4.3% $355,000 $345,000 $520,000
4 bedrooms $429,875 0.0% $430,000 $430,000 $690,000
All properties $320,604 +5.1% $320,000 $305,000 $506,250