What You Need to Know When Buying Car Insurance for the First Time

Adulting sneaks up on everyone at one point or another. If you just purchased your first car, congratulations and welcome to the club! Now, it’s time to deal with all the tedious aspects of driving your new car, like getting car insurance for the first time. First-time car insurance is as exciting as going to the dentist, but it’s necessary to protect yourself financially. If you feel overwhelmed or confused about how it all works, don’t fret. We break it down for you — especially first-time driver insurance cost.

In this article

How do I get car insurance for the first time?

Getting car insurance for the first time starts with how much you need. Each state has different requirements. Most insurance companies will know how much you need depending on where you live. The requirements are typically labeled as 25/50/10 liability insurance. This means that you’ll need liability insurance just in case you were at fault in an accident. The 25/50/10 stands for:

  • $25,000 in bodily injury coverage to pay for each person’s medical bills/injuries if you’re at fault in a crash.
  • $50,000 in bodily injury coverage per accident. This means your insurance will only pay up to $50,000 in medical bills for others you hurt in an accident. 
  • $10,000 in property damage to cover the costs of repairs and replacement of cars, fences, poles and any property you struck and damaged.

You can legally drive with the state’s liability minimums, but you may want to buy more than that. Think of the state’s requirements as the no-frills version of car insurance. The problem is that liability insurance only takes care of other people, also known as third parties. If your car was damaged or you were hurt, minimum liability insurance won’t cover you — you’d have to pay for them yourself.

In addition, a state’s liability minimums are usually not enough if you cause a more serious crash. Think about it this way, if you rear-end a new Tesla, do you think a state’s $10,000 property minimum coverage is enough to fix the Tesla you hit? If the bill for the repair is more than $10,000, your insurance will only pay up to that limit and you’d have to pay the rest out-of-pocket.

It’s best to shop around for car insurance by getting a few online quotes to find the best price. When you do, aim for liability coverage of 100/300/100. This should cover you in case of an accident with injuries involving newer, more expensive vehicles. Besides shopping around for liability insurance with the higher minimums, consider adding the following optional coverages:

Comprehensive insurance

As mentioned, liability insurance only pays for other people’s damages. Comprehensive will pay for repair or replacement of your car if it’s stolen, vandalized, lost in a fire or damaged by a falling tree limb or bad weather events such as hail and flooding. It also covers you if you strike a deer or animal while driving.

Collision insurance 

Add collision coverage to get reimbursed for repairs if your car is damaged because of the accident you caused. In addition to mandatory liability insurance, drivers typically buy comprehensive and collision coverage together. Comprehensive and collision car insurance join forces as wonder twin powers, also known as full car insurance. You’ll have coverage for the damages you cause to others and yourself.

Gap insurance

You probably know the moment you drove your sweet ride off the new car dealer you lost money. But if your car was totaled in a serious accident soon after you bought it, the trouble begins.

Your car insurance company will cut you a replacement check for your lost car based on its current market value and not what you paid for it, which is probably less than what you owe on the car loan. Meaning, the $40,000 car you’re making payments on that’s destroyed may only be worth $32,000 months later because of depreciation. Your insurance company paid you $32,000 to go get a new car, but once you hand that check over to the finance company, you still owe them another $8,000. Gap insurance pays the difference between what you owe and what your car was worth at the time it was totaled. And the coverage is way cheaper than the shortfall you could get hit with.

Do first-time insurance customers pay more?

Just because it’s your first time buying car insurance doesn’t mean it’s more expensive. Your rate depends on your age, driving record, where you live and a handful of other factors. According to the Insurance Information Institute, younger drivers pay more for car insurance. If you’re between the age of 16 to 25, be prepared to pay a little extra for car insurance.

The reason why first-time insurance may be higher for young adults is tied to the number of deadly accidents. The age group of 16- to 24-year-old drivers are responsible for 66.5% of fatal motor vehicle crashes. A lack of driving experience, more risk-taking, texting and drinking are some of the reasons young adults pose a higher risk of causing a serious crash. Therefore, drivers under 25 are more expensive to insure.

[ See: What’s the Average Cost of Car Insurance in the U.S.? ]

Where to find cheap car insurance for first-time drivers

If the cost of first time insurance could be a dealbreaker on whether you can afford your first car, consider the following tips to find cheap car insurance for first-time drivers.

Choose a more affordable car

Some cars are cheaper to insure than others. For example, a Honda will cost less in car insurance than a Tesla or a sports car. Do your research on insurance costs before you buy a car.

Stay on your parent’s car insurance

You may get a better deal on your car insurance if a parent can add you to their existing auto insurance. They may have loyalty discounts and a long-standing relationship with an insurance carrier and adding your vehicle to their policy could be cheaper than a first time insurance policy.

Shop around for quotes

The best and easiest way to find the best cheap car insurance for first time drivers is to get online quotes from a few car insurance companies. You’d be surprised at how much your car insurance could vary in cost for the same coverage, from one carrier to another.

Most insurance companies make it easy to get a quote. You’ll need an address, details about your car, such as make, model and year, and the type of coverage you’d like. Getting a quote is free and no-obligation. You’ll have an estimate to compare in just a few minutes.

Take advantage of car insurance discounts

Most car insurance companies entice new customers with discounts for a variety of reasons. The best part is, you can take advantage of more than one discount at a time. Some worth considering include:

  • Bundled coverage: Insure your car and your home or apartment with the same insurance company to get a discount on both.
  • Good student: If you’re enrolled in school, you could receive a discount on your car insurance while you study.
  • Military: Enlisted personnel get an automatic discount from most insurance carriers.
  • Telematics: Sign up for an insurance company’s driver tracking program and you could get as much as 25% off your car insurance premiums, based on your driving. You’ll need to download an app that monitors your mileage, speed and other factors to determine how safe of a driver you are and the size of your discount.
  • Defensive driving courses: Most carriers offer a decent discount of 10% or more if you complete an online defensive driving course. The courses can typically be completed over a weekend and can earn you savings over two to three years.

[ For You: Eight Ways to Save on Car Insurance ]

How to buy your first car insurance policy

Ready to buy first-time car insurance? Follow these steps to make sure you get it right.

  1. Get several online quotes: To find the best deal, get quotes from a few carriers and choose the one you like the best.
  2. Round up information: You’ll need your car’s Vehicle Identification Number (VIN) located on your title or on your driver side’s lower dashboard when looking from outside. Besides the VIN, have your vehicle’s mileage, driver’s license, contact information and home address ready. Have your bank information handy to set up automatic payments, as well as a debit or credit card to pay your first premium.
  3. Choose your policy: Enter details about the policy you’re buying, including liability insurance, dollar limits and add ons such as gap, comprehensive and collision coverage.
  4. Pick a deductible amount: The deductible is how much you’ll pay out-of-pocket in case of an accident or claim and before the insurance company steps in to pay the rest. A typical deductible is $500 or $1,000.
  5. Set an effective date: The effective date is the day your insurance starts. It can be as soon as the same day you buy the policy, although you should confirm it with the insurance company.
  6. Choose the length of your premium payment: You can pay your car insurance monthly or every six or twelve months. You could qualify for a small discount for prepaying six or twelve months or by signing up for automatic payments.
  7. Review your information: Make sure the policy, vehicle description and all the information you provided is correct.
  8. Pay for the policy: You can pay for your policy online using your banking information including routing number and bank account number. Or you could pay using a debit or credit card. Once you pay, your policy will be official, effective as of the date you chose. You’ll receive an insurance declaration page by email for your records, or you can download one.
  9. Print out your insurance card and place it in your vehicle: Print out a copy of the insurance declaration and digital insurance card and keep it in your vehicle. You may get a hard copy in the mail, but to be safe, print out a copy. You’ll need it in case of an accident or if you’re pulled over, to show as proof of insurance.

We welcome your feedback on this article. Contact us at inquiries@thesimpledollar.com with comments or questions.

Source: thesimpledollar.com

5 Things to Consider When Changing Car Insurance

October 22, 2018 &• 5 min read by Josh Smith Comments 0 Comments

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Insurance is defined as a form of protection against loss. But in today’s insurance industry, insurance can be purchased to mitigate against all forms of loss. It is a type of risk management used by people to protect against uncertain loss or the risk of failure. Insurance companies or carriers or underwriters sell premiums to those who wish to purchase premiums. Premiums can be defined as the number of money carriers charge to customers in exchange for the coverage set in the agreement also known as the insurance policy.

And in 2017, the U.S. insurance industry sold premiums reaching a total of $1.2 trillion with the health insurances accounting for a large chunk of that amount. Coming in at second place was P/C (property/casualty) premiums accounting for $558.2 billion in 2017.

Some may argue that the reason for this is due to the hike in prices of premiums over the years, but the truth is for the millions of people who have experienced softer blows because of the payouts from insurance companies, paying a premium is a small price to pay.

There are currently several types of insurance policies. From health insurance to life insurance, automobile insurance and so on.

These days, choosing a new car insurance policy that works for you is usually time-consuming, expensive or even both. And because policies are not usually permanent, you can easily switch insurance providers if you are not happy with your current provider.

And for those who think they can afford to drive around during the period they are in between a comprehensive insurance policy, the bad news is that in all but a few states, an insurance policy is needed alongside a license in order to drive.

But the good news is changing your policy provider should not be so difficult, this article outlines five of the most important things to consider when shopping for a new insurance carrier:

  1. Cost:

Like every other thing on the market, the cost of an insurance policy is not equal. It is almost impossible to get the same coverage from 10 different companies at the same price. Odds are you would get the same coverage you are getting at a fraction of the same price from another company. This is because various companies factor in different things when putting together the price for their insurance policies. Some of these costs could include the cost of running the company, the cost of offering more benefits and other hidden charges.

It is essential to factor in elements other than your out-of-pocket expenses before you decide to make the switch between car insurance companies. You can also try to take control of the factors you can control like improving your driving record or looking at additional types of auto protection plans. All these are considered by the insurance company and could eventually save you money.

  1. Your Choice:

Another important reason why several bare minimum automobile insurance policies are cheap is that they offer limited options regarding maintenance and repairs. Like a health maintenance organization (HMO), car insurance companies can ask you to take your car for approval at one of their approved dealerships for appraisals. Sticking with a top-shelf insurance company could possibly mean higher premiums but it also means better care should you need it.

The better the insurance company, the higher the premiums you would have to pay.

  1. The Benefits:

Odds are, if you cannot list the distinguishable advantages offered to you by your insurance policy, you are not gaining a lot in return. An amazing advantage you could watch out for is the reduction of rates if you go a few months without any accidents and accident forgiveness. Some companies also choose to pay for your rental car if you need to leave your car at the mechanic regardless of how long it might take.

Other companies offer reduced rates for purchases of bulk policies. i.e. The purchase of car insurance with possibly fire insurance and so on. Instead of you letting your insurance company ask what you can do for them, ask what they can do for you.

  1. The Circumstances:

Sometimes things that we do not plan for happen and when such things happen, the first thing to be done is to start searching for a new car insurance policy. For example, most new cars often need complete coverage until they are fully bought, and some local insurance companies do not offer continued coverage if you change cities.

Also, rates could also go up if a new driver is added to the policy. This is, of course, dependent on the driver’s age, gender, and driving history. Understanding your unique situation will allow you to properly assess what is needed and what is a mere frivolity.

  1. Your Company:

Because of the internet, finding out pertinent information about a prospective insurance company is very easy. You can figure out everything there is to know about them. What kind of customer service do they offer their clients? Do their representatives listen? Do they treat their customers with respect?

Find out how the claim adjusters and representatives of the company treat those who work with the cars. Knowing these things is essential because a company that treats its employees terribly will possibly skim around the edges when it comes to their customers.

Also, try doing a bit of research into the company’s ethics. It is advisable to do business with a company that believes in the same things you do and do not engage in behavior that you find personally distasteful. Your money will be used to pay for several things to ensure they are all used for things that you support.

It’s an added bonus for you if you know who your insurance agent is, and you have a great relationship with them. Usually, these people are the ones who will go the extra distance for you should you need to file a claim and they can also help with the filing of the claims or give you a recommendation on local companies that could be of help to you.

Finally, you’ll want to check your credit score. Credit.com offers a free credit score updated every 14 days. Usually when getting a new insurance quote, insurance companies will run your credit. A higher credit score usually means a lower monthly premium, although other factors like your driving record and marital impact how much you’ll be paying. Remember to consider these five factors when considering a new insurance company.

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Source: credit.com

What Is Gap Insurance, and What Does It Cover?

What Is Gap Insurance, and What Does It Cover? – SmartAsset

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When purchasing or leasing a new car, you have several insurance coverage options. When selecting coverage, you will likely know if you want to have collision coverage or not, but will you know what gap insurance and whether to select that option? If you are driving your owned vehicle or a leased one, and it is totaled, your collision coverage insurance will cover your vehicle’s cash value. The coverage will help you to purchase a another car. However, what if you owe more on your car than it’s worth? That is where gap insurance comes in. Here’s what you need to know about this type of coverage.

What is Gap Insurance?

Gap insurance protects you from not having enough money to pay off your car loan or lease if its value has depreciated, and you owe more on your car than it is worth. It is optional insurance coverage and is used in addition to collision or comprehensive coverage. It helps you pay off an auto loan if a car has been totaled or stolen, and you owe more than its worth. Gap insurance might also be known as loan or lease gap coverage, and it is only available if you are the first owner or leaseholder on a new vehicle.

Some lenders require individuals to have gap insurance. In addition to collision and comprehensive coverage, gap insurance helps prevent owners and leasers from owing money on a car that no longer exists and protects lenders from not getting paid by a person in financial distress.

How Gap Insurance Works

If you buy or lease a new car, you may owe more on the vehicle than it is worth because of depreciation. For example, let’s say you purchase a new car for $35,000. However, a year later, the car has depreciated and is only worth $25,000, and you owe $30,000 on it. Then, you total the car. Comprehensive insurance coverage would give you $25,000, but you would still owe $5,000 on the vehicle. Gap insurance would cover the $5,000 still owed.

Without gap insurance, you would have had to pay $5,000 out-of-pocket to settle the auto loan. With gap insurance, you did not have to pay anything out of pocket and were likely to purchase a new car with financing.

What Gap Insurance Covers

Gap insurance covers several things and is meant to complement collision or comprehensive insurance. Gap insurance covers:

  • Theft. If a car is stolen and unrecovered, gap insurance may cover theft.
  • Negative equity. If there is a gap between a car’s value and the amount a person owes, gap insurance will cover the difference if a car is totaled.

Gap insurance also covers leased cars. When you drive a new, leased car off the lot, it depreciates. Therefore, the amount you owe on the lease is always more than the car is worth. If you total a leased car, you’re responsible for the fair market value of the vehicle. If you lease, you can purchase gap coverage part way through your lease term, although many dealerships require both comprehensive and collision coverage and strongly recommend gap coverage.

What Gap Insurance Doesn’t Cover

Gap insurance is designed to be complementary, which means that it does not cover everything. Gap insurance does not cover:

  • Repairs. If a car needs repairs, gap insurance will not cover them.
  • Carry-over balance. If a person had a balance on a previous car loan rolled into a new car loan, gap insurance would not cover the rolled-over portion.
  • Rental cars. If a totaled car is in the shop, gap insurance will not cover a rental car’s cost.
  • Extended warranties. If a person chose to add an extended warranty to an auto loan, gap insurance would not cover any extended warranty payments.
  • Deductibles. If someone leases a car, their insurance deductibles are not usually covered by gap insurance. Some policies have a deductible option, so it is wise to check with a provider before signing a gap insurance policy.

Reasons to Consider Gap Insurance

There are several situations you should consider gap insurance. The first is if you made less than a 20% down payment on a vehicle. If you make less than a 20% down payment, it is likely that you do not have cash reserves to cover them in case of an emergency and that they will be “upside down” on the car payments.

Additionally, if an auto loan term is 60 months or longer, a person should consider gap insurance to ensure that he or she is not stuck with car payments if the vehicle is totaled.

Finally, if you’re leasing a car, you should consider gap insurance. Although many contracts require it, the vehicle costs more than it’s worth in almost every situation when you lease.

Is a Gap Insurance Worth It?

Gap insurance keeps the amount that a person owes after buying a car from increasing in case of an emergency. Therefore, if someone does not have debt on his car, there’s no need for gap insurance. Additionally, if a person owes less on his car than it is worth, there’s also no need for gap insurance. Finally, if a person does owe more on a vehicle than it is worth, he may still choose to put the money that would be spent on gap insurance every month toward the principal of his auto loan.

If a person owes more on his car than it is worth and would be financially debilitated by having to pay the remainder of his car payments if his vehicle was totaled or stolen, then gap insurance might be a saving grace.

If the extra cost of gap insurance strains your budget then consider ways to keep your vehicle insurance costs down without skipping gap insurance.

The Takeaway

Gap insurance covers the amount that a person would still owe on a vehicle after it is stolen or totaled, and after comprehensive insurance pays out. It prevents people from continuing to owe on a car that no longer exists. While it doesn’t make sense for everyone to purchase gap insurance, it is often smart for people who have expensive vehicles that are worth far more than a person owes. It is also something to consider when you are leasing a vehicle.

Tips for Reducing Insurance Costs

  • If you need a little additional help weighing your insurance options, you might want to consider working with an expert. Finding the right financial advisor that fits your needs can be simple. SmartAsset’s free tool will match you with financial advisors in your area in five minutes. If you’re ready to learn about local advisors to help you achieve your financial goals, get started now.
  • You may want to consider all the insurance options available that are suitable for your unique situation. By doing so, you save money. A free comprehensive budget calculator can help you understand which option is best.

Photo credit: ©iStock.com/ljubaphoto, ©iStock.com/Kileman, ©iStock.com/gustavofrazao

Ashley Chorpenning Ashley Chorpenning is an experienced financial writer currently serving as an investment and insurance expert at SmartAsset. In addition to being a contributing writer at SmartAsset, she writes for solo entrepreneurs as well as for Fortune 500 companies. Ashley is a finance graduate of the University of Cincinnati. When she isn’t helping people understand their finances, you may find Ashley cage diving with great whites or on safari in South Africa.
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VA Loan Myths


Tim Lucas

Posted on: December 12, 2020

Because of their complexity relative to other mortgage programs, VA loans are the subject of plenty of different myths. Some of these myths are based on truths, but what you hear can end up being very misleading, and it could be entirely untrue.

If you were to take these myths at face value without doing your own research, you might miss out on one of the best mortgage products available. Here’s the truth to some of the biggest myths surrounding VA loans:

Click to check today’s VA rates.

Myth #1: VA loans can only be used once

Because of how useful VA loans can be, some people believe they’re too good to be true. The myth VA loans can only be used once is completely false, but it’s easy to see where this mistaken idea might have come from. If you currently have a VA loan, you are not eligible for a second one.

However, this doesn’t mean you aren’t eligible for a second VA loan ever again.

Once you pay off your current VA loan, you’re eligible to use the program again. There are some small differences after the first time, such as a slightly higher cost at closing. But aside from the small differences, your second VA loan will be similar to the first one that you paid off.

Myth #2: VA members are guaranteed a mortgage

Nobody is guaranteed any type of mortgage, regardless of which mortgage program they’re applying for or whether they’re veterans. You must be approved for a mortgage, which means — depending on which program you choose — meeting credit requirements and having a specific debt-to-income ratio, among other factors.

When a lender says a VA loan is “guaranteed,” they mean the VA backs the loan. The VA guarantee is there to tell veterans they can get a mortgage with no required down payment, competitive mortgage rates and other benefits.

You can learn more about what “guaranteed” means here.

Myth #3: VA appraisals are impossible to pass

It is true that VA appraisals can be stricter than an appraisal with a different mortgage type. But that doesn’t mean they’re impossible to pass, and many VA home buyers don’t have any trouble with the VA appraisal at all. Because the VA is backing the home, they want to confirm it’s in good and livable condition before they approve any type of loan.

If you are applying for a VA loan and want to have a quick, speedy appraisal process, check here for some tips on how to pass the appraisal.

Check your VA eligibility.

Myth #4: Today’s home prices require a higher down payment

There’s no denying home prices have increased over the past decade. This has made homes harder to afford for many would-be home buyers, since down payments are usually used to lower the costs of monthly payments. The higher the downpayment, the lower the monthly payments.

Here’s the truth: with a VA loan, you don’t need to make a down payment and you can still afford a house. The key to buying an affordable home isn’t the size of the down payment, but finding a home within your means.

Many VA members purchase a home without a large down payment. In March, the average down payment for a VA loan was just two percent – below the minimum 3.5% required by FHA loans, and much lower than the traditional 20%.

While a larger down payment will lower your monthly costs, you probably don’t need to make a larger downpayment to be eligible for a VA loan.

Myth #5: VA loans take forever

When comparing FHA loans, conventional loans and VA loans, VA loans are typically the slowest program. According to mortgage software giant Ellie Mae’s October 2020 Origination Report, VA loans took an average of 54 days to close.

By comparison, FHA loans took 52 days to close, and conventional loans took an average of 54 days as well.

So yes, a VA loan is likely going to take longer to close than another program. However, a difference of 2-3 days is small when you consider how much lower VA rates are.

VA loans are slower than other mortgage types, but they do not take forever.

Click to start the VA home buying process.

Myth #6: Surviving spouses don’t qualify for VA mortgages

Actually, many spouses of veterans can qualify for a VA home loan.

Generally, the spouse must be un-remarried and the veteran must have died during service or from service-connected causes. But there are exceptions and other ways a surviving spouse can be eligible.

And, surviving spouses are exempt from paying the VA funding fee. To confirm your eligibility, your VA loan officer will request your Certificate of Eligibility (COE) and verify that it has Entitlement Code 06.

Myth #7: All realtors are good VA home loan advisors

There is no VA loan certification for real estate agents. As a result, you shouldn’t look to your real estate agent for reliable information about VA loans. And an underinformed real estate agent can unintentionally push VA-eligible borrowers towards programs that might be less advantageous for them.

Instead, you should get your VA loan facts from a VA specialty lender whose primary product is VA-backed loans.

The VA loan facts are hard to beat

The proliferation of myths about VA loans can obscure the fact this is simply one of the best loan products available to aspiring home buyers.

The VA loan rates available to eligible buyers — combined with the low down payments — are hard to beat with a conventional or FHA loan. But with a little research and a well-informed VA lender, you could be on your way to a VA home loan.

Click to check today’s VA rates.

Source: militaryvaloan.com

Nevada County, California VA Loan Information

Table of Contents

FAQ

What is the VA Loan Limit?

2021 VA Home Loan Limit: $0 down up to $5,000,000* (Subject to lender limits) /2 open VA loans at one time $548,250* (Call 888-573-4496 for details).

How to Apply for a VA Home Loan?

This is a quick look at how to apply for a VA home loan in Nevada County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Nevada County. If you have any questions, you can call us at VA HLC and we’ll help you get started.

  1. Get your Certificate of Eligibility (COE)
    • Give us a call at (877) 432-5626 and we’ll get your COE for you.
  2. Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
  3. Get pre-approved, to get pre-approved for a loan, you’ll need:
    • Previous two years of W2s
    • Most recent 30 days paystubs or LES (active duty)
    • Most recent 60 days bank statements
    • Landlord and HR/Payroll Department contact info
  4. Find a home
    • We can help you check whether the home is in one of the Nevada County flood zones
  5. Get the necessary inspections
    • Termite inspection: required
    • Well or septic inspections needed, if applicable
  6. Get the home appraised
    • We can help you find a VA-Certified appraiser in Nevada County and schedule the process
    • Construction loan note: Construction permit/appraisal info
      1. Building permit
      2. Elevation certificate
  7. Lock-in your interest rates
    • Wait until the appraisal to lock-in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
  8. Close the deal and get packing!
    • You’re ready to go.

What is the Median Home Price?

As of March 31st, 2020, the median home value for Nevada County is $477,219. In addition, the median household income for residents of the county is $63,240.

How much are the VA Appraisal Fees?

  • Single-Family: $600.
  • Individual Condo: $600.
  • Manufactured Homes: $600.
  • 2-4 Unit Multi-Family: $850.
  • Appraisal Turnaround Times: 7 days.

Do I need Flood Insurance?

  • The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
  • In Nevada county, the mountainous terrain reduces flood hazard areas to small areas surrounding bodies of water.

How do I learn about Property Taxes?

  • Sue Home is the Nevada county tax assessor. Her office can be reached at 905 Maidu Avenue Suite 290 Nevada City, California 95959. In addition, her office can also be reached by calling 530-265-1232.
  • The state of California offers various incentive programs that expand statewide for new, growing, and relocating businesses. Two of these programs are California Competes Tax Credit which offers qualifying businesses tax credit and the New employment Credit program which offers a tax credit for taxpayers who hire full-time employees. These and many other programs help in further diversifying the state’s economy.

What is the Population?

  • The county’s population of 99,755 is 84% White, 9% Hispanic, and 3% two or more races.
  • Most county residents are between 18 and 65 years old, with 17% under 18 years old and 28% older than 65.
  • In total, the county has about 40,904 households, at an average of two people per household.

What are the major cities?

The county has two cities and one town, including Nevada City which serves as the county seat. The two other cities in the county are Grass Valley and Truckee.

About Nevada County

Formed in 1851, 13 years prior to the neighboring state of Nevada attaining statehood, Nevada County was actually the first area of the United States to include the stand-alone word Nevada in its name. The term’s etymology is from the name the Sierra Nevada, Spanish for snow-covered. Nevada County is known for its involvement in the California Gold Rush. The early years of California are featured prominently throughout the county. The Nevada Theatre, built in 1865 making it the oldest theater in the state continues to operate to this day. Many notable figures have performed on the stage at the Nevada Theatre, ranging from Mark Twain to Motley Crue.

Further providing Nevada County notoriety is its place as the birthplace of Arcade Video games, with the inception of Pong. The creation of Pong led to the county being nicknamed the “Silicon Valley of the Sierras.” The first cell phone for commercial usage, with the capability of taking photos, was developed in the county seat of Nevada City. Currently, over 1,000 software designers and developers reside in the county.

Our nation’s 31st President, Herbert Hoover once lived in Nevada City, earning a living as a miner, fresh out of Stanford University.

The timber industry, government services, and tourism are the driving forces of the local economy.

Tourism based on the history of this country is reflected in many of the museums found in Nevada County. These museums put the history of the Gold Rush, mining, and the railroad at the forefront. The county is also home to numerous state parks including Malakoff Diggins State Historic Park, Grass Valley’s Empire Mine State Historic Park, and Donner Memorial State Park.

A veteran property tax exemption exists for veteran homeowners in Nevada County, amounting to $4,000. A disabled veterans exemption which is for a far greater monetary sum is accessible for disabled veterans with a total disability, blindness or the loss of use of more than one limb. This exemption is also available for the surviving spouses of disabled veterans.

Veteran Information

The county is currently home to 8,319 veterans, and they all have access to:

  • Nevada County is home to one VFW post:
    • Post-2655 Banner Mountian: 415 North Pine Street, Nevada City, CA 95959.
  • County Veteran Assistance Information
    • Nevada County Veteran Services Office: 988 McCourtney Road Grass Valley, CA 95949.

Apply for a VA Home Loan

  • For more information about VA Home Loans and how to apply, click here.
  • If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government guaranteed home loans available.  
  • VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.

VA Approved Condos

Name (ID): THE BOULDERS (000151)
Address: 
10844 CINNABAR WAY
TRUCKEE CA 96161
NEVADA
Status: Accepted Without Conditions
Request Received Date: 05/13/2015
Review Completion Date: 06/02/2015

Oregon VA Loan Information: https://www.vahomeloancenters.org/oregon-va-home-loan-limits/

VA Loan Information by State: https://www.vahomeloancenters.org/va-loan-limit-maximum-va-loan-amount/

Source: vahomeloancenters.org

First Time Home Buyer Programs for Veterans


Peter Warden

Posted on: December 12, 2020

Numerous programs exist to help veterans and service members who are first-time buyers with their closing costs and other expenses.

Indeed, it’s perfectly possible for those who are eligible for VA home loans to become homeowners with very little — or even nothing — in the way of savings.

Check today’s VA rates by completing this quick online form.

Advantages of VA home loans for first-time buyers

The most famous housing benefit associated with the VA loan program is the zero down payment requirement. That can be hugely valuable for first time home buyers.

But it’s just one of a whole range of advantages that come with a VA home loan. Here are some more.

Low mortgage rates for VA loans

According to the Ellie Mae Origination Report, in October 2020, the average rate for a 30-year, fixed-rate mortgage backed by the VA was just 2.75%. That compares with 3.01% for conventional loans (ones not backed by the government) and 3.01% for FHA loans.

So VA home loans have lower rates. And that wasn’t just a one-time fluke. VA mortgage rates are lower on average than those for other loans — month after month, year after year.

Lower funding fees for first-time buyers

When you buy a home with a VA loan, you need to pay a funding fee. However, you can choose to pay it on closing or add it to your loan so you pay it down with the rest of your mortgage.

But, as a first-time buyer, you get a lower rate. For you, it’s 2.3% of the loan amount (instead of 3.6% for repeat purchasers) if you make a down payment between zero and 5%.

That’s $2,300 for every $100,000 borrowed, which can be wrapped into the loan amount. It’s a savings of $1,300 per $100,000 versus repeat buyers.

Put down more and your funding fee drops whether or not you’re a first-time buyer. So it’s 1.65% if you put down 5% or more, and 1.4% if you put down 10% or more.

Although it might seem like just another fee, the VA funding fee is well worth the cost since it buys you the significant financial benefits of a VA home loan.

No mortgage insurance for VA loans

Mortgage insurance is what non-VA borrowers usually have to pay if they don’t have a 20 percent down payment. Private mortgage insurance typically takes the form of a payment on closing, along with monthly payments going forward.

That’s no small benefit since mortgage insurance can represent a significant amount of money. For example, FHA home buyers pay over $130 per month on a $200,000 loan — for years.

Mortgage insurance vs funding fee

Let’s do a side-by-side comparison of the mortgage insurance vs. funding fee costs of a $200,000 loan:

  VA Loan FHA Loan
Payable on closing $4,600* $3,500
Payable monthly $0 $133 per month**
Paid after five years (60 months) $4,600 $11,500

*First-time buyer rate with zero down payment: 2.3%. $200,000 x 2.3% = $4,600
** $200,000 loan x 0.8% annual mortgage insurance = $1,600 per year. That’s $8,000 over five years. $1,600 divided by 12 months = $133.33 every month

It’s clear that mortgage insurance can be a real financial burden — and that the funding fee is a great deal for eligible borrowers.

Better yet, that makes a difference to your buying power. Because, absent mortgage insurance, you’re $133 a month better off. And that means you can afford a higher home purchase price with the same housing expenses.

Ready to buy a home? Start here.

Types of first-time homebuyer programs for VA loans

You may find two main types of assistance as a first-time buyer:

  1. Down payment or closing cost assistance
  2. Mortgage credit certificates

Down payment and closing cost assistance

There are thousands of down payment assistance programs (DAPs) across the United States and that includes at least one in each state. Many states have several.

Each DAP is independent and sets its own rules and offerings. So, unfortunately, we can’t say, “You’re in line to get this …” because “this” varies so much from program to program.

Some help with closing costs as well and down payments. Some give you a low-interest loan that you pay down in parallel with your main mortgage. Others give “forgivable” loans that you don’t pay back — providing you stay in the home for a set period. And some give outright grants: effectively gifts.

Mortgage credit certificates (MCCs)

The name pretty much says it all. In some states, the housing finance agency or its equivalent issues mortgage credit certificates (MCCs) to homebuyers — especially first-time ones — that let them pay less in federal taxes.

The Federal Deposit Insurance Corporation explains on its website (PDF):

“MCCs are issued directly to qualifying homebuyers who are then entitled to take a nonrefundable federal tax credit equal to a specified percentage of the interest paid on their mortgage loan each year. These tax credits can be taken at the time the borrowers file their tax returns. Alternatively, borrowers can amend their W-4 tax withholding forms from their employer to reduce the amount of federal income tax withheld from their paychecks in order to receive the benefit on a monthly basis.”

In other words, MCCs allow you to pay less federal tax. And that means you can afford a better, more expensive home than the one you could get without them.

Speak with a mortgage specialist today.

Dream Makers program

Unlike most DAPs, the Dream Makers Home Buying Assistance program from the PenFed Foundation is open only to those who’ve provided active duty, reserve, national guard, or veteran service.

You must also be a first-time buyer, although that’s defined as those who haven’t owned their own home within the previous three years. And you may qualify if you’ve lost your home to a disaster or a divorce.

But this help isn’t intended for the rich. Your income must be equal to or less than 80% of the median for the area in which you’re buying. However, that’s adjustable according to the size of your household. So if you have a spouse or dependents, you can earn more.

It’s all a bit complicated. So it’s just as well that PenFed has a lookup tool (on the US Dept. of Housing and Urban Development (HUD’s) website) that lets you discover the income limits and median family income where you want to buy.

What help does the Dream Makers program offer?

You’ll need a mortgage pre-approval or pre-qualification letter from an established lender to proceed. But then you stand to receive funds from the foundation as follows:

“The amount of the grant is determined by a 2-to-1 match of the borrower’s contribution to their mortgage in earnest deposit and cash brought at closing with a maximum grant of $5,000. The borrower must contribute a minimum of $500. No cash back can be received by the borrower at closing.”

So supposing you have $2,000 saved. The foundation could add $4,000 (2-to-1 match), giving you $6,000. In many places, that might easily be enough to see you become a homeowner.

You don’t have to use that money for a VA loan. You could opt for an FHA or conventional mortgage. But, given the advantages that come with VA loans, why would you?

The Dream Makers program is probably the most famous of those offering assistance to vets and service members. But there are plenty of others, many of which are locally based.

For example, residents of New York should check out that state’s Homes for Veterans program. That can provide up to $15,000 for those who qualify, whether or not they’re first-time buyers.

Start your home buying journey here.

State-By-State Home Buyer Assistance Programs

We promised to tell you how to find those thousands of DAPs — and the MCC programs that are available in many states.

It takes a little work to find all the ones that might be able to help you. But you should be able to track them down from the comfort of your own home, online and over the phone.

A good place to start is the HUD local homebuying programs lookup tool. Select the state where you want to buy then select a link and look for “assistance programs.”

Your best starting point is probably the state’s housing finance office though it might be called something slightly different. You should find details of programs or just a list of counties with phone numbers. Call the number where you want to buy, explain your situation and ask for advice. It’s their agents’ jobs to point you to local, state, or national programs that can help you.

If you look in the right place, you could secure some very worthwhile financial help to assist you in buying your first home.

Check today’s VA rates by completing this quick online form.

Source: militaryvaloan.com

Wheeler County, Oregon VA Loan Information

Table of Contents

FAQ

What is the VA Loan Limit?

2020 VA Home Loan Limit in Wheeler County is $0 down payment up to $5,000,000* (subject to lender limits) /2 open VA loans at one time $548,250 (Call 877-432-5626 for details).

How to Apply for a VA Home Loan?

This is a quick look at how to apply for a VA home loan in Wheeler County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Wheeler County. If you have any questions, you can call us at VA HLC and we’ll help you get started.

  1. Get your Certificate of Eligibility (COE)
    • Give us a call at (877) 432-5626 and we’ll get your COE for you.
  2. Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
  3. Get pre-approved, to get pre-approved for a loan, you’ll need:
    • Previous two years of W2s
    • Most recent 30 days paystubs or LES (active duty)
    • Most recent 60 days bank statements
    • Landlord and HR/Payroll Department contact info
  4. Find a home
    • We can help you check whether the home is in one of the Wheeler County flood zones
  5. Get the necessary inspections
    • Termite inspection: required
    • Well or septic inspections needed, if applicable
  6. Get the home appraised
    • We can help you find a VA-Certified appraiser in Wheeler County and schedule the process
    • Construction loan note: Construction permit/appraisal info
      1. Building permit
      2. Elevation certificate
  7. Lock-in your interest rates
    • Pro tip: Wait until the appraisal to lock-in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
  8. Close the deal and get packing!
    • You’re ready to go.

What is the Median Home Price?

As of March 31st, 2020, the median home value for Wheeler County is $172,177. In addition, the median household income for residents of the county is $33,456.

How much are the VA Appraisal Fees?

  • Single-Family: $775.
  • Individual Condo: $825.
  • Manufactured Homes: $825.
  • 2-4 Unit Multi-Family: $950.
  • Appraisal Turnaround Times: 15 days.

Do I need Flood Insurance?

The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.

How do I learn about Property Taxes?

  • Auralea Woods is the Wheeler county tax assessor. Her office can be reached at 701 Adams Street Ste. 203 Fossil, Oregon 97830. In addition, her office can also be reached by calling (541) 763-4266.
  • The state of Oregon offers businesses that invest and hire in enterprise zones the option to be exempt from property taxes for at least three years. In addition, the Oregon Investment Advantage program encourages new businesses that are starting as well as ones who are relocating to the state with various incentives. For example, the program offers income tax subtraction and elimination of state income liability for new businesses for many years.

What is the Population?

  • The county’s population of 1,332 is 86% White, 6% Hispanic, and 6% Mixed Race.
  • Most county residents are between 18 and 65 years old, with 14% under 18 years old and 36% older than 65.
  • In total, the county has about 661 households, at an average of two people per household.

What are the major cities?

There are currently three cities in the county Mitchell, Spray, and Fossil, the latter of which serves as the county seat.

About Wheeler County

Wheeler County, Oregon officially formed in 1899, the county was named after Henry H. Wheeler, a man who operated the first mail stage line from The Dalles to Canyon City. The county’s boundaries have not changed since it was created. In addition, when the county was created the county seat was set to be temporarily placed in the city of Fossil, which was named after a fossil that was discovered in the area in 1876. A year later an election was held to choose the county seats permanent place, and Fossil won.

Today, the county’s economy depends on its livestock and tourism industries. However, the biggest employment industries in the county are farming, educational services, and public administration. Therefore, the most common occupations in the county are management, farming, and educational instruction.

The Wheeler County Community & Economic Development team is encouraging the growth of its local economy by assisting potential new businesses by getting access to the necessary resources. In addition, free and confidential business advising is also offered to help build a stronger business within the county.

When it comes to education, the county is serviced by two school districts with Fossil School District and Spray School District #1. Both districts provide education for students K-12.

Finally, the county is also home to The Oregon Paleolands Institute headquarters, which provides educational tours, hikes, and workshops to teach more about the region’s geology and paleontology. In addition, the county is also host to annual events like the Wheeler County Fair and Rodeo, and the Wheeler County Bluegrass Festival.   

Veteran Information

The county is currently home to 154 veterans, and they all have access to:

  • County Veteran Assistance Information
    • Wheeler County Veteran Services Office – 401 Fourth Street, Fossil, OR 97830.

Apply for a VA Home Loan

  • For more information about VA Home Loans and how to apply, click here.
  • If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government guaranteed home loans available.  
  • VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.

VA Approved Condos

There are currently no VA-approved condos in Wheeler County, Oregon. However, it is still possible to get a condo through the condo approved and we can help you through the condo approval process, just call us at (877) 432-5626.  

Oregon VA Loan Information: https://www.vahomeloancenters.org/oregon-va-home-loan-limits/

VA Loan Information by State: https://www.vahomeloancenters.org/va-loan-limit-maximum-va-loan-amount/

Source: vahomeloancenters.org

VA vs. FHA: Which Government Product Is Best?


Nicole Carlson

Posted on: December 12, 2020

There are plenty of different home loan products that home buyers can choose from, with popular products including FHA and VA loans. The Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) are both government-backed programs, but they have their own set of benefits and drawbacks.

When looking to buy a house, which is best: VA or FHA? The answer depends entirely on what the buyer is looking for.

Here’s a breakdown of some of the big differences between the two mortgage products:

Click to check today’s VA rates.

Downpayment

For home buyers looking to avoid a downpayment, it’s tough to beat VA loans. VA loans don’t require any type of downpayment – part of the program’s guarantee.

FHA loans will require a downpayment of at least 3.5%, but that’s still well below that traditional 20 percent that many home buyers assume they need.

In terms of getting the lowest downpayment possible, VA loans have FHA loans beat.

Insurance

If you make a downpayment of less than 20 percent on an FHA loan, you can expect to be paying a mortgage insurance premium, or MIP. This will be paid either upfront at the closing of the FHA loan or monthly, with the annual fee being spread over all 12 months.

Unlike other types of mortgage insurance, MIP will also last the life of the FHA loan. That means an FHA buyer with less than 20 percent down will be required to refinance their loan after they’ve established enough equity in their home.

VA loans, on the other hand, require no type of insurance regardless of how much the buyer puts down. This is another part of the VA’s guarantee – the VA insures the loan, so any type of insurance is moved away from the home buyer.

Mortgage Rates

It’s difficult to peg mortgage rates since they’re always changing, but one thing is clear: VA loans typically come with a lower mortgage rate than FHA loans.

Mortgage software giant Ellie Mae demonstrates this. Each month, they compile a report of all the loans that go through their software. That report is then released, giving home buyers valuable information to work with.

In October, the average mortgage rate for a VA loan was 26 basis points (0.26%) lower than the average rate for an FHA loan. October wasn’t a fluke, either; VA loans routinely have lower mortgage rates than FHA loans.

Check today’s VA loan rates.

Qualification

While VA loans have an edge with downpayment, mortgage rates and insurance, home buyers will still need to qualify for the loans. Here’s how different qualification requirements compare for both products:

Credit scores

Technically, VA loans have no minimum credit score and FHA loans can be approved with scores as low as 520. But in the real world, lenders will want to see a credit score of at least 580 for FHA loans, and usually around 620 for VA loans.

According to Ellie Mae’s October 2020 Origination Report, the average credit score for closed VA loans in October 2020 was 725, compared to 683 for FHA loans. Granted, this does not show what the minimum requirement is for either product. However, generally speaking, FHA loans are usually more flexible with credit scores than VA loans.

DTI

With the debt-to-income ratio (DTI), both VA and FHA home buyers will want to keep their total debt to income below 45 percent. This means that the total monthly amount spent on debt (including the mortgage you’re trying to get) needs to be below 45 percent of monthly income.

Neither product has an edge here, but it’s still an important part of qualifying to pay attention to.

Eligibility

Anyone can be eligible for an FHA loan, but only specific veterans and military members can get a VA loan. Usually, most veterans are eligible, so long as they’ve served for 2 years or more. Requirements for eligibility do change, though, depending on when the individual served, how they served and why they retired from the military.

For a more in-depth look at VA loan eligibility, click here.

Ease of using the product

VA loans have a reputation for going slower than other loan products, but that’s not entirely the case. According to Ellie Mae, the average VA loan closed in 51 days – just one day slower than the average FHA loan.

The longest part of the VA home buying process can be the VA appraisal. With some preparation, this process can go smoothly, as with all the other steps of buying a home with a VA loan. Click here to find out how to make the VA appraisal process go smoothly.

Which is best?

On paper, VA loans have more benefits than FHA loans. Each situation is different, though, so it’s impossible to say whether or not one product is definitively better than the other.

That being said, VA eligible home buyers will likely want to take advantage of the VA’s mortgage product.

Click here to check your VA loan eligibility.

Source: militaryvaloan.com

Placer County, California VA Loan Information

Table of Contents

FAQ

What is the VA Loan Limit?

2021 VA Home Loan Limit: $0 down up to $5,000,000* (Subject to lender limits) /2 open VA loans at one time $598,000* (Call 888-573-4496 for details).

How to Apply for a VA Home Loan?

This is a quick look at how to apply for a VA home loan in Placer County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Placer County. If you have any questions, you can call us at VA HLC and we’ll help you get started.

  1. Get your Certificate of Eligibility (COE)
    • Give us a call at (877) 432-5626 and we’ll get your COE for you.
  2. Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
  3. Get pre-approved, to get pre-approved for a loan, you’ll need:
    • Previous two years of W2s
    • Most recent 30 days paystubs or LES (active duty)
    • Most recent 60 days bank statements
    • Landlord and HR/Payroll Department contact info
  4. Find a home
    • We can help you check whether the home is in one of the Placer County flood zones
  5. Get the necessary inspections
    • Termite inspection: required
    • Well or septic inspections needed, if applicable
  6. Get the home appraised
    • We can help you find a VA-Certified appraiser in Placer County and schedule the process
    • Construction loan note: Construction permit/appraisal info
      1. Building permit
      2. Elevation certificate
  7. Lock-in your interest rates
    • Wait until the appraisal to lock-in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
  8. Close the deal and get packing!
    • You’re ready to go.

What is the Median Home Price?

As of March 31st, 2020, the median home value for Placer County is $529,595. In addition, the median household income for residents of the county is $84,357 which is higher than the national average.

How much are the VA Appraisal Fees?

  • Single-Family: $600.
  • Individual Condo: $600.
  • Manufactured Homes: $600.
  • 2-4 Unit Multi-Family: $850.
  • Appraisal Turnaround Times: 7 days.

Do I need Flood Insurance?

  • The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
  • In Placer county, there flood hazard areas around Dry Creek. in addition, there are small flood hazards immediately around the many creeks around the county. Moreover, other flood areas are next to Folsom Lake, and Lake Tahoe, although they are small and away from populated areas.

How do I learn about Property Taxes?

  • Kristen Spears is the Placer county tax assessor. Her office can be reached at 2980 Richardson Drive, Auburn, California 95603. In addition, her office can also be reached by calling (530) 889-4300
  • The state of California offers incentive programs that expand statewide for new, growing, and relocating businesses. Two of these programs are the California Competes Tax Credit which offers qualifying businesses with a tax credit, and the New employment Credit which offers a tax credit for taxpayers who hire full-time employees. Furthermore, the state offers several other incentives.

What is the Population?

  • The county’s population of 398,329 is 72% White, 14% Hispanic, and 4% mixed race.
  • Most county residents are between 18 and 65 years old, with 22% under 18 years old and 19% older than 65.
  • In total, the county has about 140,661 households, at an average of two people per household.

What are the major cities?

The county has five cities and one town, including the city of Auburn which serves as the county seat. Four other cities in the county are Colfax, Lincoln, Rocklin, and Roseville. In addition, the town of Loomis is also within the county.

About Placer County

Placer County, California is home to rich tourism and recreation industries. However, the biggest employment industries are healthcare, retail trade, and public administration. Therefore, the most common types of employment in the county are in the management, sales, and administrative support sectors.

The county is also host to several business development programs that are meant to enable the founding and growth of businesses in the county. For example, the Sierra Small Business Development Center provides no-cost webinars, capital access, and specialty programs to help grow the local economy.

When it comes to education, there are twelve school districts that provide education for students ranging from kindergarten to 12th grade of High School. In addition, higher education opportunities are provided by Sierra College, which offers two-year degrees, and William Jessup University, a private institution that offers four-year degrees and above.

Finally, the natural beauty and plethora of fun outside activities make the county a destination for people who enjoy the outdoors. From its multiple hiking, horseback riding, and mountain biking trails as well as its water recreational activities in gorgeous lakes like Lake Tahoe. Hence, the county sees more than a million visitors every summer and winter.  

Veteran Information

The county is currently home to26,333 veterans, and they all have access to:

  • Placer County is home to three VFW post:
    • Post 904 Placer Foothills – 5945 Horseshoe Bar Road Loomis, CA 95650. 
    • Post 3010 Glen Edwards – 541 5th Street Lincoln, CA 95648.
    • Post-2003 Jess E. Taylor – 22 Sunset Circle Colfax, CA 95713.
  • VA Medical Centers in the county:
    • Sierra Foothills Outpatient Clinic – 11985 Heritage Oak Pl, Auburn, CA 95603.
  • County Veteran Assistance Information
    • Placer County Veteran Services Office – 1000 Sunset Boulevard, Suite 115, Rocklin, CA 95765.

Apply for a VA Home Loan

  • For more information about VA Home Loans and how to apply, click here.
  • If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government guaranteed home loans available.  
  • VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.

VA Approved Condos

Name (ID): AUBURN BLUFFS TOWNHOMES (000098)
Address:
AUBURN & FOLSOM ROADS
AUBURN CA 95603
PLACER
Status: Accepted Without Conditions
Request Received Date: 10/24/2013
Review Completion Date: 11/30/2013
Name (ID): KINGSWOOD VILLAGE CONDOMINIUMS (000051)
Address: 
1001 COMMONWEALTH DR
KINGS BEACH CA 96143
PLACER
Status: Accepted With Conditions
Request Received Date: 08/20/2012
Review Completion Date: 10/15/2012
Name (ID): AUBURN HIGHLANDS (000341)
Address: 
PO BOX 6624
AUBURN CA 95604
PLACER
Status: Accepted Without Conditions
Request Received Date: 07/18/2018
Review Completion Date: 08/07/2018
Name (ID): OAK POINTE (000243)
Address: 
758 DOROTHY WAY
AUBURN CA 95603
PLACER
Status: Accepted Without Conditions
Request Received Date: 02/13/2017
Review Completion Date: 06/14/2017
Name (ID): CAMPANIA HOA (000281)
Address: 
1001 DANTE CIRCLE
ROSEVILLE CA 95678
PLACER
Status: Accepted Without Conditions
Request Received Date: 08/20/2017
Review Completion Date: 09/05/2017
Name (ID): PALOMA AT FOSKETT RANCH (007453)
Address: 
JOINER & LAS PALOMAS LOOP
LINCOLN CA 95648
PLACER
Status: Accepted Without Conditions
Request Received Date: 12/19/2006
Review Completion Date: 12/20/2006
Name (ID): CLUB PACIFIC CONDO’S (C00441)
Address: 
PHASES 1 – 17
ROCKLIN CA 95677-0000
PLACER
Status: Accepted Without Conditions
Request Received Date: 01/01/2000
Review Completion Date: 01/01/2000
Name (ID): PARK PLACE -PHASE 6, 7, 8 (007086)
Address: 
937 MARVIN GARDENS WAY
ROCKLIN CA 95756
PLACER
Status: Accepted Without Conditions
Request Received Date: 10/24/2002
Review Completion Date: 01/12/2003
Name (ID): HEARTHSTONE (007386)
Address: 
ROCKLIN CA 95677
PLACER
Status: HUD Accepted
Request Received Date: 03/13/2006
Review Completion Date: 03/13/2006
Name (ID): ROSEVILLE GREENS (C01289)
Address: 
(FHA APPROVAL #860001HAC)
ROSEVILLE CA 95678-0000
PLACER
Status: Accepted Without Conditions
Request Received Date: 08/07/1980
Review Completion Date: 08/07/1980

Oregon VA Loan Information: https://www.vahomeloancenters.org/oregon-va-home-loan-limits/

VA Loan Information by State: https://www.vahomeloancenters.org/va-loan-limit-maximum-va-loan-amount/

Source: vahomeloancenters.org

Current VA Refinance Rates


Nicole Carlson

Posted on: January 14, 2021

Mortgage interest rates remain at historic lows this week. As reported from a weekly survey of 100+ lenders by Freddie Mac, the average mortgage interest increased for all three main loan types — 30-year fixed (2.65% tp 2.79%), 15-year fixed (2.16% to 2.23%), and 5/1 ARM increased (2.75% to 3.12%)..

VA refinance rates are no different. In fact, when compared to other loan types — conventional and FHA, for example — VA home loans offer consistently lower rates than for the average consumer.

Shop and compare your personalized rates with multiple lenders.

VA Refinance Rates 2020

  VA Conventional FHA
September 2020 2.78% 3.02% 3.01%
August 2020 2.86% 3.12% 3.10%
July 2020 3.02% 3.26% 3.26%
June 2020 3.20% 3.42% 3.41%
May 2020 3.24% 3.44% 3.45%
April 2020 3.31% 3.48% 3.56%

Source: Ellie Mae Origination Insight Report, September 2020

When should you refinance?

In general, if you can save money over the life of your loan, then you should consider refinancing. Everyone’s financial situation is different, however, and refinancing can help you achieve a couple of different financial goals. Below are some of the most common reasons homeowners refinance:

  1. Lower your interest rate and monthly payment. Refinancing into a lower interest rate not only reduces the total interest costs you owe over the life of the loan, but it can reduce your monthly mortgage payment as well. This is the most common reason to refinance.
  2. Pay off your current non-VA home loan. VA home loans don’t require private mortgage insurance (PMI) like other loan types (FHA loans, for example, require PMI for the life of the loan if you put less than 10% down). You can also adjust your loan terms and interest rate type.
  3. Fund home projects or consolidate your debt. If you’ve earned enough equity in your home, then a cash-out refinance allows you to tap into that equity for cash. There are no restrictions on how you can use the money, so many homeowners use it to pay for home repairs or remodel projects as well consolidate debt.

What type of refinance should I choose?

There are two types of VA refinance loans: VA streamline refinance and VA cash-out refinance. Both have different benefits and loan processing requirements, so it’s important for homeowners to know what they want to accomplish with a refinance.

VA Streamline Refinance

Also known as an Interest Rate Reduction Refinance Loan (IRRRL), the VA streamline refinance is best if you want to lower your interest rate and monthly payment. In fact, your new monthly payment must be lower than your current one to be eligible for this loan. It has one of the easiest refinancing process — you don’t have to verify your income or credit score, and you don’t need a home appraisal.

VA Cash-out Refinance

The VA cash-out refinance loan is the only refinance option for taking out some or all of the earned equity in your home as cash. Qualifying for this loan is a longer process. You’ll need to meet similar requirements to when you purchased your existing home, including credit score and debt-to-income ratio requirements, plus a new home appraisal.

How do I get the best VA refinance rate?

According to research from the Consumer Financial Protection Bureau (CFPB), almost half of consumers don’t compare quotes when shopping for a home loan. This means many consumers are losing out on substantial savings. Comparing quotes from three to four lenders ensures that you’re getting the lowest refinance rate for you. Some lenders may even waive certain fees and closing costs.

Interest rates determine what you’ll pay monthly as well as the total interest amount over the life of the loan. Even a half a percentage point decrease can mean a savings of thousands of dollars you’ll owe overall.

Average Mortgage Interest Rates 2020

Source: militaryvaloan.com