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No Big Changes to California VA Loan Requirements in 2022 (Thus Far)

Mortgage loan limits, requirements and guidelines can sometimes change from one year to the next. For instance, we recently wrote that the size limits for conforming loans will likely go up in 2022.

But we haven’t seen any major changes regarding California VA loan requirements in 2022. Home prices continue to climb across the state, and mortgage rates have crept upward as well. The housing market continues to evolve. But as far as the VA loan program goes, the status quo prevails.

California VA Loan Requirements in 2022: More of the Same

The VA loan program offers many benefits to California’s large military population. Most active-duty, National Guard and Reserve members are eligible for the program (or will be at some point in their careers). Many veterans can take advantage of this program’s benefits as well.

In a previous blog post, we explained some of the key requirements for a California VA loan. This article serves as an update to that piece, with an outlook for 2022.

The Department of Veterans Affairs has not announced any major changes regarding VA loan requirements in 2022. So the information presented in the linked article above will remain accurate into next year.

The first step in applying for a VA loan is to determine your eligibility. Servicemembers and veterans can request a Certificate of Eligibility (COE) directly from the Department of Veterans Affairs.

Aside from that, the process and requirements for a California VA loan are similar to other mortgage programs. Borrowers must show that they have sufficient income to cover their closing costs and monthly payments.

This is actually one of the easiest mortgage programs to qualify for, thanks to the federal government’s involvement. VA loans receive a partial guarantee, which allows lenders to be more flexible when qualifying borrowers. That’s just one of the many benefits this program has to offer.

An Update on Home Prices and Mortgage Rates

To recap, we do not expect any major changes for California VA loan requirements in 2022. But the housing market has certainly changed over the past year. Here are some key trends you should be aware of.

Home prices in California have risen substantially over the past year or so. This has affected many home buyers and mortgage shoppers, including those using the VA loan program.

According to numerous sources, the median home price in California rose somewhere between 15% and 20% in the past year alone. That’s well above the historical average for the past few decades.

Mortgage rates are starting to trend upward, as well. The average rate for a 30-year fixed home loan hovered below 3% for much of 2021. It dropped to an annual low of 2.77% back in August. But as of mid-November, the 30-year mortgage rate average had risen to around 3.10%.

The bottom line here is that homes continue to get more and more expensive in California. So if you’re in the market to buy, you might want to consider doing it sooner rather than later.

Some good news: the real estate market seems to be getting a bit more friendly toward buyers. According to a November 2021 report from the California Association of REALTORS®:

As the housing market moves from ‘frenzied’ to ‘less frenzied’ and price growth comes back to earth, fewer homes are selling above asking price and bidding wars are less prevalent, so more buyers who pushed pause earlier this year will be able to take advantage of still-cheap financing.

As a result of these and other trends, home buyers might have an easier time navigating the real estate market in 2022.

Bridgepoint Funding Specializes in the VA Program

Do you have questions about California VA loan requirements in 2022? Want to apply for the program, or find out how much you can borrow toward a home purchase? We can help!

Located in the Bay Area, Bridgepoint Funding serves borrowers all across the Golden State. And we specialize in the VA home loan program.

Here are just a few of the things we can do for you:

  • Help you obtain your Certificate of Eligibility (COE)
  • Answer any VA loan questions you might have
  • Determine how much you’re able to borrow
  • Pre-approve you for a loan so sellers will take your seriously

Please contact our staff if you financing questions, or if you’d like to apply for a loan. We look forward to helping you.

Mike Trejo

Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience.

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