California military members and veterans tend to have a lot of questions about the VA…
Need a VA loan in Palmdale, California? We’ve got you covered. Bridgepoint Funding specializes in VA loans and serves the entire Antelope Valley region.
We’ve begun publishing a series of articles geared toward home buyers and homeowners in Palmdale, California (one of the areas we service). Today, we will look at the VA loan program. This is a popular financing option in the Palmdale area, due to the sizable military population that resides there.
Here’s what you should know about using a VA loan to buy a home in Palmdale, CA.
A Popular Mortgage Option in Palmdale, CA
Located about an hour’s drive from Los Angeles, Palmdale is one of the two primary cities that make up the Antelope Valley region. (Lancaster is the other.) These two cities make up the bulk of Antelope Valley’s population, though there are other towns and communities in the region as well.
Palmdale, California has a fairly large military population. Many active-duty personnel and veterans alike live in the area. There are several reasons for this. Edwards Air Force Base is located nearby, and they actually feature the city of Palmdale on their relocation assistance page.
The aerospace industry also has a large footprint in the area. In fact, Palmdale, California has often been referred to as the “Aerospace Capital of America,” due to its long history supporting that industry. Many former military people currently work for the aerospace industry and reside in the Antelope Valley area.
The bottom line is there are many home buyers and homeowners in the Palmdale area who could benefit from using a VA loan. (This program is limited to military members, veterans, and certain eligible spouses.)
Let’s now shift gears and talk about the benefits of using a VA loan in Palmdale.
Why Use a VA Loan When Buying a House?
A mortgage loan with no down payment. That’s basically what the Department of Veterans Affairs home loan program offers to borrowers. It allows eligible home buyers in the Palmdale area to buy a house without putting any money down.
As it states on the Department’s website, VA purchase loans “help you purchase a home at a competitive interest rate often without requiring a downpayment or private mortgage insurance.”
They’ve mentioned two of the main benefits in a single sentence:
- No down payment. If you use a VA loan when buying a home in Palmdale, California, you could potentially finance 100% of the purchase price. That means you wouldn’t have to make a down payment at all. A big benefit, especially in pricey real estate markets.
- No mortgage insurance. Borrowers who use this program can also avoid paying mortgage insurance. This insurance is usually required when borrowers put down little or no money on a house purchase. But when using a VA loan, Palmdale home buyers can typically avoid this extra cost.
This program offers other benefits as well. Because these loans are guaranteed by the government, the qualification criteria are typically more lenient than a traditional mortgage. It’s one of the easiest home loans to qualify for, provided you have sufficient income to cover your payments.
Using a VA loan in Palmdale also gives you some flexibility when it comes to your closing costs. The Department of Veterans Affairs allows sellers to contribute money toward the buyer’s closing costs — up to 4% of the property value. Granted, the seller has to agree to this contribution. And that will depend on local housing market conditions. Just know that it’s possible.
For most home buyers, the VA loan’s biggest benefit comes from the zero-down-payment option mentioned above. Avoiding mortgage insurance is like the icing on the cake.
Have Questions About the Program?
To apply for a VA loan, you have to work with a mortgage company that has been approved to participate in the program. We are such a mortgage company. But we go above and beyond by specializing in this program.
At Bridgepoint Funding, we are passionate about offering VA loans because they reward our brave servicemembers. This program gives something back to people who truly deserve it.
While we are located in the Bay Area, we serve borrowers across the state of California. We have helped many home buyers in the Palmdale area with their VA loan needs. And we welcome the opportunity to help you as well.
Please contact us if you have questions about this program, or if you’d like to apply for a loan.