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VA Loans in Dos Palos
Dos Palos offers veterans an opportunity to buy without down payment requirements that stop many buyers. The VA loan's zero down structure works especially well in smaller Central Valley markets where inventory moves at a steady pace.
Most veterans here use VA loans to buy single-family homes and small agricultural properties. Merced County's affordable housing stock makes the VA loan limits more than adequate for qualified borrowers.
We see strong lender appetite for VA loans in Dos Palos despite the rural designation. Properties here appraise cleanly when they meet VA minimum property standards.
You need a Certificate of Eligibility showing qualifying military service. Most veterans with 90+ days active duty qualify, as do current service members after 90 days continuous service.
VA doesn't set minimum credit scores, but most lenders want 580-620 minimum. Income must support a debt-to-income ratio under 41%, though exceptions exist for strong compensating factors.
No down payment required, but you'll pay a funding fee ranging from 1.4% to 3.6% unless you're exempt due to disability. This fee can be rolled into the loan amount.
Not all lenders handle rural VA loans aggressively. We work with wholesale lenders experienced in Merced County properties who understand agricultural zoning and well/septic systems.
Rate spreads vary significantly between VA lenders. Shopping across 200+ wholesale sources typically saves veterans 0.125% to 0.375% compared to retail banks.
Appraisal timelines run 10-14 days in Dos Palos since the VA appraiser pool is limited. Plan for this when making offers with tight closing windows.
Veterans shopping Dos Palos often compare VA against USDA loans. VA wins when you want faster closings and more property type flexibility, but USDA can offer lower monthly costs for income-qualified buyers.
The VA funding fee is your biggest upfront cost. Disabled veterans save thousands by getting this waived. Make sure your disability rating is documented before you apply.
Watch for properties needing repairs. VA requires homes to meet minimum property standards before closing. Peeling paint, faulty heating systems, and roof issues must be fixed by the seller or you'll need cash to close and refinance repairs in later.
FHA requires 3.5% down plus monthly mortgage insurance that never drops off. VA gives you zero down and no monthly PMI, making monthly payments $150-$200 lower on a $350,000 purchase.
Conventional loans need 5% down minimum and PMI until you hit 20% equity. VA eliminates both requirements but charges the upfront funding fee instead.
USDA also offers zero down in Dos Palos but requires income limits and longer processing. VA has no income caps and typically closes faster.
Many Dos Palos properties sit on larger lots with wells and septic systems. VA appraisers require water quality testing and septic inspections. Budget $400-$600 for these reports and expect 5-7 day turnaround.
Agricultural zoning is common here. VA allows purchase of homes on ag land, but the property must be primarily residential. If a barn or shop exceeds the home's value, you'll need a different loan type.
Dos Palos falls within VA loan limits that work for virtually all properties in this market. The 2024 standard limit covers loans up to $766,550 with zero down.
Yes, if the home is the primary structure and you'll use it as your residence. The VA allows agricultural zoning as long as the property functions as a single-family home.
Most lenders require 620 minimum, though the VA itself sets no floor. Scores below 620 limit your lender options significantly.
No. Veterans with any VA disability rating are exempt from the funding fee. This saves 1.4% to 3.6% of the loan amount.
Expect 21-30 days from application to closing. Appraisal scheduling takes longer here due to limited VA appraiser availability in rural Merced County.
Not if it needs repairs to meet VA minimum property standards. The home must be move-in ready at closing with functioning systems and no safety hazards.
VA closes faster and has no income limits, making it better if you qualify for both. USDA works better only if you exceed VA lender credit requirements.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.