What is a VA loan?
A VA home loan is a mortgage available through a program established by the United States Department of Veterans Affairs. VA home loans assist service members, veterans, and eligible surviving spouses to become homeowners. The VA sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan.
VA Loan Benefits
The U.S. government is grateful for all of the American veterans and military personnel who have served our country and they have created these VA loan programs to help veterans find, and keep, the home of their dreams…while making the purchase as affordable as possible.
As a military family and veteran, there are several reasons why it is beneficial to take advantage of the VA loan programs that the government offers.
VA loans offer the following benefits:
No down payments
The VA mortgage loan program allows veterans and military personnel with qualifying income and credit to purchase their home without a down payment. This means the loan will equal the sales price of the home.
No monthly mortgage insurance
Unlike Conventional mortgage loans and FHA mortgage loans, VA mortgage loans do not charge monthly mortgage insurance. This is an average savings of anywhere between $30 and $200 a month, depending on the loan amount.
Lower credit and income requirements
Another benefit of the VA loan program is that getting approved for a VA loan is easier than getting approved for a Conventional or FHA loan because a veteran’s credit score and income levels do not have to be as high for approval.
VA loans allow seller concessions
VA loans allow the seller to contribute up to 4% towards the costs associated with the VA loan on the home buyer’s behalf. This is exceptionally important in helping a veteran purchase a new property and reducing the amount of money needed for closing.
Lower interest rates on monthly payments
For many veterans, VA mortgages offer the most competitive rates. Since VA mortgage loan rates are not tied to credit scores the way conventional home mortgage rates are, veterans and military personnel can enjoy lower mortgage rates.
No prepayment penalties
The VA mortgage program allows veterans to make prepayments on their VA mortgage loan and pay off their home loan earlier without incurring any prepayment penalties. This allows veterans to save on the overall interest costs of their mortgage.
VA Loan Requirements
The United States Department of Veterans Affairs sets the rules for who may qualify for a VA home loan, and issues minimum guidelines and requirements under which mortgages may be offered.
You may qualify for a VA loan in Florida if you meet any of the following requirements:
- If you have served 90 days or more of active duty service during war time;
- If you have served 181 days or more of active duty service during peace time;
- You are currently active duty personnel and meet either of the above service requirements;
- You have more than 6 years of service in the National Guard or Reserve;
- You were discharged from service honorably;
- You are the surviving spouse of a veteran who died during services or of service related injuries and are not remarried.
We are proud to say that we are VA approved and we strive to help veterans throughout the state of Florida take full advantage of the VA loan program and all of its benefits. Our VA loan experts have extensive experience and will take the time to sit with you and determine your eligibility for a VA home loan.
As a first step in determining your eligibility for a VA mortgage, we are happy to offer you a free VA mortgage consultation to discuss the details of your eligibility.