VA Home Loan

My name is David Cairns and I want to thank you for your current or past service to us as a member of the military services. You have given of yourself and your time. It is my pleasure to give you my time and knowledge to help you understand the VA loan program here in San Diego. I love closing VA transactions and handing you the keys to your new home.

Over 30 million have answered the call to serve. A recent statistic I read is that 1 in 8 males are veterans. As a way of saying thank you for your service the Veteran Affairs Department has created the VA Loan program. There are many benefits to using this program to purchase your first home or to purchase your next home.

Misconception #1:

Did you know that the VA Loan is not a one time deal? You may use it over and over again throughout your life. Each time you wish to purchase a home the VA loan program is there for you.

Don’t leave money on the table; Basic Allowance for Housing (BAH):

If you are active military you have access to the Basic Allowance for Housing (BAH) that can assist you in paying your monthly mortgage. The BAH is calculated based on your rank and whether or not you have dependants.

What do I mean by leaving money on the table? If you do not use your BAH for a home purchase while you are serving you do not later get that money. By using your BAH to purchase a home while serving when you leave the military you have a major asset; the home. And the great part is the mortgage payments were made with the allowance!

So, what can your BAH buy you?

I have worked with military clients before and one request I have heard is ‘I want to pay for the principal on the mortgage, interest, taxes, and insurance (aka PITI) with the BAH and not with the rest of my paycheck. In the examples below, when I say ‘approximate buying power of $XXXXXX’ that means you could buy a home of up to that value and be able to use the BAH to pay for the principal, interest, taxes, interest, and utilities.

(All information is for educational purposes and not a guarantee. The following assumptions were made: 30 year fixed rate loan at 5% interest rate. All BAH quotes are estimates.)

Rank E01-E04
With dependants; BAH $1941; approximate purchase power $249,000
Without dependants; BAH $1464; approximate purchase power $179,000

Rank E05
With dependants; BAH $2019; approximate purchase power $264,000
Without dependants; BAH $1731; approximate purchase power $220,000

Rank E06
With dependants; BAH $2196; approximate purchase power $288,000
Without dependants; BAH $1875; approximate purchase power $242,000

Rank E07
With dependants; BAH $2307; approximate purchase power $304,000
Without dependants; BAH $1947; approximate purchase power $255,000

If your rank is not listed here drop me a note and I can give you an estimate based on your rank.

Who is qualified for a VA Loan?

  • Active duty personnel
  • Personnel with previous qualifying active military service
  • Reservists, National Guard, and Coast Guard who meet minimum enlistment requirements
  • Unmarried, surviving spouse of military personnel who were missing or killed in combat
  • ROTC, cadets/midshipmen in Army, Navy, Air Force, and Coast Guard academy
  • Honorably discharged personnel

A qualifying veteran will be required to provide a Certificate of Eligibility. The veteran will need a DD-214, NG Form 22, or Statement of Service. If you have trouble locating yours I have a great company that I work with that specializes in military VA loans and they can assist you.

Why choose a VA loan?

  • 0% down payment
  • The loan amount can be up $477,000 (modified Jan 2012)
  • Gift money (money from other sources like parents) is allowed for closing costs
  • No monthly Mortgage Insurance
  • No prepayment fees
  • VA Funding fee, if any, can be financed into the loan

VA Loan Type options:

  • 15 and 30 year fixed rate loans
  • 3/1, 5/1 hybrid Adjustable Rate Mortgages (ARM)

Eligible Property Types:

  • Single Family Residences; what you think of when you hear the word house (SFR)
  • Condominiums (VA Approved)
  • 2-4 unit properties
  • Manufactured housing

Well, I don’t want to go on and on. I would love to help you out; even just be a sounding board for you. You can fill out the form on the right side of the screen and I will be in contact shortly. You can also reach me at 619-937-5871 or david@davidcares.com. Thanks for reading!