| San Diego County is home to one of the
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| | less than 10% of the loan amount, the fee
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| largest concentrations of military bases
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| | is 1.5% of the loan. This rate increases
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| in the United States. In fact, the San
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| | to 1.75% for National Guard/Reserve.
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| Diego area contains 12 major Marine Corps
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| | For active duty personnel or veterans who
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| and Navy bases and facilities. If you're
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| | put a down payment of 10% or more of the
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| in the military and moving to San Diego,
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| | loan amount, the fee is 1.25% of the
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| one of your biggest decisions is whether
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| | loan. This rate increases to 1. 5% for
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| to buy a property, live on base housing
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| | National Guard/Reserve.
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| (if this option is available to you), or
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| | The rates listed above are for first time
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| rent a home or apartment. If you choose
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| | users of the VA loan guarantee program.
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| to buy a property, there are many issues
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| | Individuals who have used the VA
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| to consider before taking this step.
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| | guaranteed loan program before pay higher
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| BUY OR RENT?
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| | rates than first time users. The rates
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| The decision to buy or rent is more
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| | above are subject to change. In some
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| complicated for military personnel
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| | limited cases, individuals are exempt
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| because you may be assigned to San Diego
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| | from paying the funding fee. You should
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| only for a limited period of time. If you
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| | contact your local VA center for current
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| plan to purchase while in San Diego and
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| | information.
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| then sell when you transfer, the
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| | CHOOSING A VA LOAN VS. A CONVENTIONAL
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| condition of the real estate market at
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| | LOAN
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| the time you sell will make this either
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| | You must carefully evaluate the terms of
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| an easy or difficult process. In a
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| | the VA guaranteed loan vs. the terms of a
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| seller's market (when demand exceeds
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| | conventional loan. One advantage of a VA
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| supply), properties tend to sell quickly
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| | guaranteed loan is that many lenders will
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| and at or above asking price. In a
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| | not require you to put a down payment on
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| buyer's market (when supply exceeds
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| | the purchase of the property, assuming
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| demand), properties usually take much
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| | you meet their other lending criteria
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| longer to sell and may sell below asking
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| | (e.g. credit scores, sufficient income,
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| price. Individuals in the military should
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| | adequate debt to income ratio, etc.).
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| consider this issue in determining
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| | There are also many zero down payment
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| whether to buy or rent real estate in the
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| | conventional loan programs. In some
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| San Diego area.
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| | cases, the VA guaranteed loan will offer
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| For those who choose to buy, the major
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| | a lower interest rate and better terms,
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| other consideration is the likely
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| | and in other cases, you can obtain a
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| appreciation rate of your property during
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| | better deal through conventional
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| your tenure in San Diego. If you plan to
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| | financing. A good loan officer can help
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| sell your property before you depart to
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| | you evaluate the advantages of either
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| your next assignment, you should remember
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| | loan, given your particular situation.
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| that there are expenses (e.g. realtor
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| | FINDING THE RIGHT HOME
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| fees, taxes, etc.) associated with
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| | If you are familiar with the San Diego
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| selling your house, and any price
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| | area, then you probably already know
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| appreciation you realize by owing the
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| | where you want to live. If you are less
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| property for a few years, may or may not
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| | familiar with the communities in San
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| be offset by these fees.
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| | Diego, your Realtor can serve as an
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| Some individuals choose to keep their
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| | excellent resource to answer your
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| property even after they transfer to a
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| | questions. There are many steps to take
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| new assignment outside of San Diego. In
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| | during the home search process, which
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| these cases, you can rent out the
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| | include:
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| property, leave it empty, or find another
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| | 1. Work with your loan officer to
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| acceptable use of the dwelling. If you
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| | identify how much you can afford.
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| choose to hire a Property Manager to
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| | 2. Determine what type of property you
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| oversee the renting and maintenance of
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| | want to buy (single-family home,
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| your property, keep in mind that the fess
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| | townhouse, condominium, other). Your
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| for this service will cut into any
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| | Realtor can advise you about the
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| monthly profit you realize on the
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| | differences between these types of
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| property.
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| | properties.
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| GETTING A HOME LOAN?
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| | 3. Determine how many bedrooms,
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| If you decide to purchase a property,
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| | bathrooms, square footage, etc. you need.
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| obtaining a home loan is one of the tasks
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| | 4. Determine what areas of San Diego you
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| you must undertake. Many active-day
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| | would consider living in.
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| members, retirees and other service
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| | 5. Calculate the drive time (with and
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| veterans are eligible for special loan
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| | without traffic) to your job.
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| programs guaranteed by the Veterans
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| | 6. Identify the quality of schools in the
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| Administration (VA).
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| | neighborhoods that you are considering.
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| To be eligible for a VA guaranteed loan,
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| | 7. Locate the crime statistics for the
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| you must have served on activity duty and
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| | neighborhood that you are considering.
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| have a discharge status of other than
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| | 8. Identify the location of local
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| dishonorable after a minimum of 90 days
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| | community resources such as libraries,
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| of service during wartime, or a minimum
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| | shopping centers, athletic centers, etc.
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| of 181 continuous days during peacetime.
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| | 9. Ask your Realtor to advise you about
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| There is a minimum 2-year service
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| | the resale potential of the home you are
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| requirement for veterans who enlisted
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| | considering.
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| after September 7, 1980. The 2-year
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| | Although there are many other factors to
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| requirement also applies to Officers who
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| | consider, the above is a good starting
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| began service after October 16, 1981.
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| | point. Your Realtor should be able help
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| There is a minimum 6-year service
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| | you get answers to the questions above as
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| requirement for National Guard members
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| | well as provide you many other resources.
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| and Reservists, and surviving spouses are
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| | Keep in mind that most Realtor's who
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| also eligible under some conditions.
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| | assist homebuyers and paid by the home
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| There are other special conditions in
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| | seller, but make sure to ask your Realtor
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| which a person may be eligible, so
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| | about this.
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| contact your local VA office to get more
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| | HOW MUCH SHOUD I PAY FOR A HOUSE?
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| information.
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| | Your Realtor should be an excellent
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| WHAT IS VA GUARANTEED LOAN?
| |
| | source of information to help you
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| The VA loan is a federal guarantee of a
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| | understand a fair offer price. The
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| maximum of 25% of a home loan amount but
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| | Realtor should provide you information
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| not to exceed $104,250. This formula
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| | about what other similar properties in
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| allows eligible members to obtain a
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| | the same community have sold for
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| maximum loan amount of $417,000 (as of
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| | recently, current pricing trends for the
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| 2006). However, service members must meet
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| | community, as well provide you a
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| other eligibility requirements.
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| | recommendation based on their experience
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| Individuals borrowing using this type of
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| | in the local market.
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| loan must intend to be occupants of the
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| | DO I NEED A HOME INSPECTION?
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| purchased property.
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| | There are many other issues besides the
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| Private lenders are the source of funds
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| | offer price to consider when making an
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| for VA guaranteed loans. The guarantee
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| | offer. For example, many buyers find it
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| provides these private lenders assurance
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| | advantageous to get an inspection of the
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| that the federal government will
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| | property by a qualified inspector. The
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| reimburse the lender up to the maximum
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| | inspection typically covers the major
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| allowable amount if the borrower fails to
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| | systems of a property. Check out the
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| repay the loan. Because of this
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| | National Association of Home Inspectors
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| guarantee, lenders are more favorable to
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| | web site for more information about what
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| offering loans without a requirement for
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| | is covered in a typical home inspection.
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| a down payment.
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| | Getting a home inspection is generally a
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| VA CERTIFICATE OF ELIGIBILITY
| |
| | good idea.
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| Individuals desiring a VA guaranteed loan
| |
| | HOW LONG WILL THIS TAKE?
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| must first obtain a Certificate of
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| | If you want to use the VA guarantee, then
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| Eligibility from the Veterans
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| | make sure you have obtained the
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| Administration (VA Form 26-1880). Contact
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| | Certificate of Eligibility far in advance
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| your local VA office to obtain this form
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| | of your relocation to San Diego. Whether
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| by calling 1-888-244-6711. You will need
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| | or not you are using the VA loan program,
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| a copy of your military discharge
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| | be sure to obtain a loan pre-approval
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| document (DD-214) to submit with your
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| | (sometimes called loan prequalification)
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| application. Once you have the
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| | from a lender or mortgage broker. This
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| Eligibility Certificate, you can then
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| | lets home sellers know that you are a
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| select a lender or mortgage broker to
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| | serious buyer and are ready to act
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| work with on getting the loan.
| |
| | quickly if needed.
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| CLOSING COSTS
| |
| | Prior to moving to San Diego, get a sense
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| In addition to the purchase price of your
| |
| | of the local real estate market. Your
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| property, there are closing costs that
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| | Realtor can set up an automatic email
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| must be paid to process your home loan.
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| | notification system that will send you
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| These closing costs are fees that are
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| | descriptions and pictures of properties
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| charged by different service providers to
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| | that meet your criteria. Doing this type
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| help complete the loan process. For
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| | of research should save you a lot of time
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| example, your lender will require an
| |
| | when you arrive.
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| appraisal of the property to make sure
| |
| | Once you have your loan pre-approval, the
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| that its value is at or above your
| |
| | next step is to locate a property that
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| purchase price. Other charges commonly
| |
| | meets your needs. Your Realtor should
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| included in closing costs are: recording
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| | show you a variety of available
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| fees, credit report fee, prorated taxes
| |
| | properties that meet your criteria. Once
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| and assessments, hazard insurance, flood
| |
| | you find a house you an interested in,
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| insurance (if required), survey, title
| |
| | your Realtor will prepare the purchase
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| examination, title insurance, postage and
| |
| | offer documents, and guide you through
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| shipping fees, and the VA Funding fee.
| |
| | the loan and closing process.
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| WHAT IS THE VA FUNDING FEE?
| |
| | In summary, it's simply a process of
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| The VA charges a fee to individuals
| |
| | getting a loan, finding a house that you
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| utilizing the VA guaranteed loan. This
| |
| | like, making an offer that is accepted,
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| fee is a percentage of the loan amount
| |
| | and going through the closing process,
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| and is linked to the size of your down
| |
| | which can occur in less than 30 days.
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| payment on the home you plan to purchase.
| |
| | CONTACT A SAN DIEGO REALTOR
|
| For active-duty personnel or veterans who
| |
| | If you are moving to San Diego, contact a
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| put no money down, the funding fee is
| |
| | Real Estate agent who is familiar with VA
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| 2.15% of the loan amount. This rate
| |
| | guaranteed loans and has experience
|
| increases to 2.4% for National Guard
| |
| | working with military buyers. Many agents
|
| Reserve.
| |
| | have prior military service themselves,
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| For active duty personnel or veterans who
| |
| | and are very familiar with your situation
|
| put a down payment greater than zero but
| |
| | and needs.
|
