A VA (Veterans Administration) guaranteed home loan is the preferred loan program for Gainesville active, non-active, Reserve, National Guard, and retired military of the armed forces because there is no down payment needed. In addition, no private monthly mortgage insurance is required. The VA home loan program can be used to purchase a home or refinance an existing VA mortgage.
The best part is a VA mortgage is one of the few loan programs that still allows Gainesville borrowers to finance 100% of the home’s value and purchase with $0 down. In fact, the VA home loan and USDA loans are the only mortgage programs that permit 100% financing in Gainesville.
More than 27 million veterans and service personnel are eligible for VA financing, yet most aren’t aware it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.
We will discuss what role the Veterans Administration plays in a VA-guaranteed mortgage, the benefits of a VA home loan, who is eligible for a VA loan, and the VA documentation you will need to present to your lender.
VA Does Not Offer Loans Directly and Does Not Guaranty You Will Qualify.
VA does not actually lend the money to you directly. They offer a guarantee to a lender that if you should default on the loan, they will pay the lender a percentage of the loan balance. Although the VA does not guarantee that you will qualify, they provide lenders with guidelines that help to make sure their customers can afford their loan payments.
The primary benefit of a VA-guaranteed mortgage is that it doesn’t require a down payment — unless required by the lender or the purchase price is above the reasonable value of the property.
Primary Benefits of Gainesville VA Home Loans:
- 100% Financing
- No monthly private mortgage insurance is required
- There is a limitation on the buyer’s closing costs
- 30-year fixed loan
- The seller can pay up to 4% of the veterans closing costs and even pay down your debt to help lower your debt-to-income ratio
- Interest rates are similar to FHA rates
- You don’t need perfect credit
- VA Jumbo loans are also available.
Who is Eligible for a VA Home Loan?
Any Gainesville Vets with active duty service, that was not dishonorable, during World War II and later periods, are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days of service.
Veterans with service only during peacetime periods and active-duty military personnel must have had more than 180 days of active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.
VA Documentation Needed:
The three specific pieces of documentation a lender will need to determine your eligibility are a DD214 for discharged veterans, a statement of service for active military personnel, and a certificate of eligibility (COE) to determine you have VA entitlement.
Some lenders can have different qualifying guidelines, the next step is to contact your VA lender to find out if you meet their qualifying criteria such as minimum FICO credit scores, debt-to-income (DTI) ratios, and find out what your county’s maximum loan amount is. We can help with all the VA loan pre approval aspect and also help you obtain your certificate of eligibility.
Questions? Please call us above or just submit the quick Info Request Form on this page and a VA loan pro will reach out to you.
VA Mortgage Hub is Florida’s leading 100% VA loan resource serving you 7 days a week. Serving all of Alachua County Veterans living in Archer, Gainesville, Hawthorne, High Springs, La Crosse, Micanopy, Newberry, and Waldo FL. Gainesville