http://mil-loans.com - Military Home Loans is a VA loan specialist in San Diego California. As San Diego VA Loans experts, we cater to Veterans in San Diego as well as veterans throughout the state of California. We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs.
We want to insure that every veteran across America anybody who is eligible for their VA loan can have access to the full scope of what the VA offers them as a home loan benefit.
Basically the VA in the late 90s got a very bad reputation. They were taking forever. Did anybody suffer through a 90 or 120+ day escrow? I got one from the front of the room. Those were fun, yeah. So in the early 2000's what happened? Other loan programs showed up. 80/20 loans, zero down pmi loans, purple loans and all the other fun stuff. And those loans worked for everybody not just our veterans. So if you could do zero down and get basically the same interest rate, it works for everybody and the loan officers can just crank them out. And by the way, the VA loan limit was stuck at $240,000 in our area until 2004. What did $240,000 buy in 2004? So the VA left the area, basically nobody was doing them which is what the chart shows up here. Until 2007 we did virtually no VA in Southern California at all.
By 2009 that had exploded. What happened? (In) 2007, all the other loan programs went away. Pretty simple. In 2005 the VA fixed the loan limit so it's no longer stuck at $240,000 we've talked about that and in 2007 all the other loan programs went away. So now when you want to do a zero down loan what loan program do you use? If you're a VA person you use VA and if you're not a VA person, you don't. You start saving up your money for a down payment unless you're going to go buy out in Ramona and use USDA or something like that. For the most part, the VA is the only unrestricted zero down loan out there and it's an amazing tool because of that.
The funny part about this little graph that you don't realize is that if you went back in time, back to the 90's and 80s, that chart would have been right back up where it was because the VA has typically been somewhere between 8% and 12% of the market. That's pretty much what we're back to, it's about 8% and 12% of the market. So people buying houses out there, does it work for everybody? No. Are you going to use it all of the time? No. But are you here in this class because you want to use it for those 10% of the people and be the expert at it? Yes. Which is why I thank you for coming. So that is what has happened, that's where we came from and where we are going to.