The Processing Time for California VA Loans Is Similar to Conventional

A survey showed that many military members in California and nationwide believe that VA home loans take longer to process than conventional mortgages. But that’s not always the case.

In fact, mortgage industry data show there’s only a minor difference between the average closing time for conventional and VA loans in California. And in some cases, borrowers using a VA loan could potentially close faster than those who use conventional financing.

You also have to consider the major advantages offered by VA-guaranteed mortgage loans. Home buyers who use a VA loan to purchase a house in California can finance up to 100% of the purchase price. This allows them to avoid the upfront down payment altogether.

Misconceptions Among Military Members, Veterans

A 2022 survey conducted by Navy Federal Credit Union revealed that military members have a lot of misconceptions regarding the VA loan program. This program is available to most active-duty military members and veterans in California. It offers a wide range of benefits, including a zero down payment purchase option.

However, many military folks who are eligible for this program believe they have to put money down in order to qualify. As we wrote in a previous blog post, a significant portion of survey respondents thought they had to put down at least 20% for a VA loan. That’s a long way the zero down payment benefit offered by this program.

The survey also revealed that many military members believe VA loans have a longer processing time than conventional mortgages. In this context, a “conventional” home loan is one that is not insured or guaranteed by the federal government.

Typical Processing Time for a California VA Loan

Industry data reveal that VA loans do, in fact, take a bit longer to close when compared to conventional mortgages. But the difference is small, especially when you consider the many benefits this program has to offer.

Previous studies conducted by ICE mortgage technology — a software company that serves the mortgage industry — have compared the average processing and closing time for VA and conventional loans. As it turns out, VA loans in California and nationwide only have a slightly longer processing time on average.

Consider the similarities:

• When considering all purchase loans (including FHA, VA and conventional), the average processing time was around 49 days.
• When looking at VA-guaranteed home loans in particular, the average processing time was around 55 days.

The timeline in this context covers the entire mortgage process, from the initial application to the final closing. And as you can see, VA loans only take slightly longer when compared to other mortgage programs.

No Down Payment, No Mortgage Insurance

For many home buyers in California, a difference of just a few days for mortgage processing is not a big deal. This is especially true when you consider the noteworthy advantages offered by California VA loans.

This program was designed to reward our brave military servicemembers. It allows eligible borrowers to purchase a home with no money down, while also avoiding mortgage insurance in most cases. There’s really no other program that offers this combination of benefits and features.

Additionally, VA home loans in California tend to be easier to obtain, when compared to conventional mortgage financing. That’s because the federal government gives mortgage lenders a partial guarantee. As a result of this federal backing, banks and lenders tend to be more flexible when approving applicants for a VA loan.

Have Questions About the Program?

At Bridgepoint Funding, we specialize in offering VA loans to home buyers and homeowners in California. We are passionate about this government program, because it offers big benefits to people who deserve them – military servicemembers and veterans.

We can also answer any questions you might have about VA loan processing in California. While we’re located in the San Francisco Bay Area, we serve borrowers all across the Golden State.

Please feel free to contact us if you have questions about applying for a VA home loan in California!