First-Time VA Loan in Chico: How to Get Pre-Approved

Are you a veteran, an active military member, or the spouse of a veteran seeking a home? How do you get a first-time VA loan in Chico, CA? Thanks to the Department of Veterans Affairs, you can apply for a VA Loan with zero down payment. Apart from this, there is no need to pay for private mortgage insurance (PMI), so you save more. Read this post for advice about getting approved for your first VA home loan.

Eligibility for a First-Time VA Loan in Chico

Firstly, VA loan applicants must have rendered at least 90 days of active service to qualify. However, several eligibility requirements may come into play depending on the details of your service. We recommend checking the eligibility requirements here. It will give you a better idea of the different benchmarks that may affect eligibility. Spouses may also be eligible if their partner died in the line of duty or due to a service-related incident. 

VA Funding Fee

The purpose of the VA funding fee is to help finance future VA home loans. First-time VA loan applicants need to pay 2.3%. If they choose to pay a down payment of 5%, the funding fee drops to 1.65%. Exemptions to the VA funding fee include disabled veterans, surviving spouses, and active service members who received a Purple Heart.

VA Loan Process

Those excluded from the VA funding fee must obtain an exemption status before choosing a lender. Conversely, those required to pay the fee must have a Certificate of Eligibility (COE). Please register or sign in to the eBenefits website using your Premium DS account to request a COE. You may also ask a VA lender to get a COE.

Once you have chosen a VA lender, you can contact a VA-friendly real estate agent to help you find a home. Please inform your agent about the budget, the type of home, and the home’s neighborhood. An experienced real estate agent can help you through the process. To be pre-approved, you must submit all necessary documents to the lender on time.

Are you looking for a real estate agent specializing in first-time VA home loans in Chico? Our realtors are knowledgeable and experienced in VA home loan processes.

Are you considering buying or selling a home in the Butte County area? We’d love to help you! Please click here for our contact page, and we’ll reach out to you promptly. 

Would you like to see more great info from Welcome Home Butte County? Please click here for our blog page.  

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