Plenty of wonderful benefits of the 100% VA home loan program here in Florida. Backed by the U.S. Department of Veterans Affairs, VA mortgages were developed to assist active military personnel, veterans to become homeowners at an affordable cost.
The Florida VA loan requires no down payment, requires no mortgage insurance (PMI) and allows flexible guidelines for qualification and pre approval.
Listed below are the just some of the benefits of the VA loan program:
100% FINANCING – NO DOWNPAYMENT
Most home loan programs require you to make at least a small down payment to purchase a home. In fact VA, along with USDA loans, are the only programs that still permit 100% financing in FL. The VA loan is a true no-money-down opportunity.
NO PREPAYMENT PENALTY
A VA loan won’t restrict your right to sell your home if you decide you no longer want to own it. There’s no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home. Furthermore, there are no restrictions regarding a refinance of your VA loan. You can refinance your existing VA loan into another VA loan via the agency’s Interest Rate Reduction Refinance Loan (IRRRL) program or switch into a non-VA loan at any time.
NO “PMI” or MORTGAGE INSURANCE
Typically, lenders require you to pay for mortgage insurance if you make a down payment that’s less than 20%. This insurance, referred to as private mortgage insurance (PMI) for a conventional loan or a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan. But a VA loan neither a no down payment nor mortgage insurance. That makes this a VA backed mortgage very affordable upfront and over time.
EASY TO QUALIFY
Like all mortgage types, VA loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. But, as compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guaranty. The Department of Veterans Affairs genuinely wants to make it easier for you to buy a home or refinance.
BACKED AND GUARANTEED BY THE U.S. GOVERNMENT
There’s a reason why the VA loan comes with such favorable terms. The federal government guarantees that a portion of the loan will be repaid to the lender even if you’re unable to make monthly payments for whatever reason. This guarantee encourages and enables lenders to offer VA loans with exceptionally attractive terms to borrowers that want them.
ABILITY TO SHOP AND COMPARE
VA loans are neither originated or funded by the Veterans Administration. In addition, mortgage rates for VA loans aren’t set by the VA itself. Instead, VA loans are offered by VA approved banks, lenders, and mortgage companies that sets its own VA loan rates and fees. This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.
FLEXIBLE TERMS AND LOAN OPTIONS
A VA mortgage can have a fixed rate or an adjustable rate. 30 Year Fix, 15 Year Fix, 5/1 ARM, etc. The VA loan can be used to buy a house, condo, townhome, etc. The VA refinance can also be used to reduce your interest rate and mortgage payment thanks to the VA IRRRL Program.
REDUCED VA CLOSING COSTS
The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans.
FUNDING FEE FLEXIBILITY
VA loans require a “funding fee”, an upfront cost based on your loan amount, your type of eligible service, your down payment size plus other factors. Funding fees don’t need to be paid as cash, though. The VA allows it to be financed with the loan, so nothing is due at closing. And not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.
Whether you’re an active duty serviceperson, a veteran, a member of the National Guard, a Reservist or surviving spouse of a veteran; you are likely eligible for VA benefits.
VA Mortgage Hub is Florida’s leading 100% VA loan resource serving you 7 days a week. Questions? Please call us, or just submit the quick Info Request Form on this page and a VA mortgage specialist will connect with you.
Serving Military hero throughout FL including – West Palm Beach – Miami – Jacksonville – St. Augustine – Lake City – Tallahassee – Pensacola – Fort Walton Beach – Destin – Gainesville – Ocala – Daytona Beach – Deland – Deltona – Lakeland – Kissimmee – Orlando – Winter Garden – Wesley Chapel – Tampa – Riverview – Naples – Port Charlotte – Sarasota FL