Tuesday, June 19, 2012

How Do I Find a VA Assumable Loan in Northern California

By Melly Parker

When a member of the military wants to buy a home, he is eligible for more favorable loan terms than most other people through a United States Department of Veterans' Affairs loan. Finding a VA assumable home loan in Northern California is no different than finding one in the rest of the United States. The seller must be or have been a member of the Armed Forces for a certain number of days, based on when he did his tour of duty and whether it was war or peacetime. You don't have to be a veteran to assume a VA home loan, but it helps.

Make a list of what you want in a home, what you need in a home and what you can afford. It will help narrow down the available properties.

Contact a real estate agent in the area where you want to purchase a home. Some large cities in Northern California include San Jose, Berkeley, San Mateo, Palo Alto and San Francisco. If you're looking for a realtor in the bay area, choose one with a focus on the community you want to live in -- not the entire area.

Explain that you're interested in assuming a VA home loan. Request that the agent search for homes being sold under those terms.

Drive slowly through the area where you want to purchase a home, taking down the numbers and addresses of homes with "For Sale" signs. Some homes with VA loans may be held by people who choose to skip using an agent and sell their house alone.

Browse online home listings and read the descriptions to see if a VA loan is assumable on any property. If it is, it will be advertised -- it's a strong selling point.

Bring proof of your military service when you find a property you like. It may encourage the buyer to sell the home to you over a nonservice person, since he won't lose his VA loan during the assumption if you qualify on your own for a VA loan.

As of June 2011, VA home loans had an interest rate below 4.5 percent.

Determine whether you're eligible to assume the loan as a member of the military yourself. Some homes with VA loans won't be listed as assumable unless you're a member of the military because the person selling it would lose his eligibility for a VA home loan while you were using it -- unless you qualified as a veteran yourself.

Don't buy a home just because you can assume a VA home loan. Get it inspected and appraised first.


http://www.lenderva.com

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