The military is an important part of San Diego’s history and economy. With the number of service veterans who choose to call San Diego home, their use of financing from the U.S. Department of Veterans Affairs play a huge role in the local housing market.
According to a January 2013 report from the San Diego Regional Chamber of Commerce, San Diego has the third largest population of military veteran residents in the country. The chamber’s report noted that San Diego area veterans are often younger, better educated and earn higher incomes than both the average vet and non-veteran. These individuals can be outstanding employees, and they comprise a significant portion of area business owners, according to the report.
Many veterans can take advantage of financing from Veterans Affairs to obtain their dream home in San Diego. A VA loan is government-backed financing available only to service veterans and gives them the flexibility and ability to finance a home purchase, an important option given the strength of the local market and the cost of homes in San Diego. According to the website
www.military.com, a VA home loan allows qualified buyers to purchase a home with no down payment. This financing also foregoes monthly mortgage insurance premiums and limits the closing costs that a veteran buyer pays.
“I believe VA financing is the best purchase product available in the market today,” said Michael Deery, mortgage specialist with Citywide Financial Corp.
Deery recently shared some important facts about VA home loans in his blog —
www.michaeladeery.com/blog — to help veterans understand the ins-and-outs of how the VA mortgage program works. Interested parties can check out the blog for details on veteran eligibility for VA financing.
Deery noted that VA loans are the only program that allows 100 percent financing in any area. He also shared that many lenders may have easier qualifying and credit guidelines for veterans.
“Most VA lenders only need a 620 credit score to offer 100 percent VA financing,” said Deery. “We can also give a VA buyer a 3 percent lender credit to cover all their closing costs.”
For veterans buying in San Diego, the VA offers 100 percent financing on homes up to $500,000. VA loans of more than $500,000 are available but require a downpayment.