IE Business Daily Business news for the Inland Empire.
Current and former members of the military residing in either Inland Empire county can purchase a home with no money down, thanks to the federal government’s VA loan program. According to one local VA lender, VA loans in California not only offer home buyers the chance to finance a home with zero down payment obligation, but also without the added cost of private mortgage insurance.
“Both of these are incredible advantages for the buyer,” said Ed Hoffman, president of Wholesale Capital Corporation in Moreno Valley (WCCloans.com) who operates the wounded veterans’ fund WCC Charities (WCCcharities.org). “With the news that 5 in 10 millennials still consider a downpayment a barrier to buying a home, those who have served in the military should find the prospect of a no money down loan very encouraging.”
Hoffman also states that removing private mortgage insurance is a great benefit because its cost can amount to several thousands of dollars per year. “A VA loan replaces the private mortgage insurance with a mandatory one-time funding fee,” Hoffman stated. “This is much more convenient for the borrower because they only pay it once and it’s much lower than the annual cost of mortgage insurance.” According to Hoffman, the certificate of eligibility, issued by the VA, will determine how much the funding fee should be or whether the borrower is eligible to have the funding fee waived altogether (if the borrower is a disabled veteran).
As a major supporter of veterans’ causes, Hoffman welcomes military borrowers to inquire about their options. “Even if they think they might not qualify for a home loan right now, I encourage them to come in and speak with a loan officer,” he said. “At WCC, we have very flexible credit terms for our VA borrowers. Most veterans with fair credit scores are actually surprised at how willing we are to work with them.”
There are closing costs on a VA home loan in Calfornia, says Hoffman. “If there is an origination fee, then the lender isn’t allowed to charge the borrower any of these fees at all,” he said. “The VA says that non-allowables can be paid by the seller, or they can be paid by either the agent in the form of a credit at closing, or by the lender in the form of a credit on the interest rate.”
VA borrowers are typically only responsible for closing costs such as the origination fee, appraisal fee, credit report fee and survey.
“Inland Empire veterans are using the VA loan program for first-time home buyer purchases, refinances of their current homes, and purchases of move-up homes as well,” Hoffman said. He welcomes current and former military members who are interested to contact Wholesale Capital Corporation at (844) 571- 2777. “Tell them you want to speak with one of our loan officers about VA loans.”