The VA mortgage program is a loan program created by the U.S. government and guaranteed by the U.S. Department of Veterans Affairs. The loan is designed to provide special benefits and qualifying conditions to veterans of the Armed Forces as well as the surviving spouses of veterans. Strict guidelines must be met by Florida lenders wishing to offer VA loans.
We have immense respect and admiration for the men and women of the U.S. military, and deeply appreciate the sacrifices they make to secure our freedoms. It is our sincere honor to assist Florida’s military families wishing to purchase a home or refinance their home mortgage in every way that we can.
Below we will discuss some important things eligible South Florida home buyers will want to know about getting pre approved for a VA loan. Questions? Please call us at ph: 800-743-7556 or just submit the quick Info Request Form and a local VA loan specialist will contact you 7 days a week. VA Mortgage Hub is Florida’s leading VA loan specialist.
Getting VA Pre Approved:
Getting a VA mortgage qualification letter prior to looking for a new home with an agent is an important step in the home buying process. The VA loan pre approval letter will provide the loan applicant with an idea of their qualifying amount, monthly expenses and down payment requirements. Additionally, the VA loan pre-approval letter gives the seller and realtors involved a better sense of security and confidence that the purchase contract will be able to close… and most importantly on time.
There is a big difference between a “Pre-Approval Letter” and a Mortgage Approval Conditions List. The VA Pre-Approval Letter is generally issued by a loan officer after credit has been pulled, income and assets questions have been addressed and some of the other initial borrower documents have been reviewed. The VA Pre-Approval Letter is basically a loan officer’s written communication that the borrower fits within a particular loan program’s guidelines. The pre approval letters will always be contingent on an acceptable VA home appraisal. The Mortgage Approval Conditions List is a bit more detailed, especially since it is usually issued by the underwriter after an entire loan package has been submitted.
Even though questions about gaps in employment, discrepancies on tax returns, bank statement deposits, and other qualifying related details should be addressed before a VA loan specialist issues a Pre-Approval Letter, the final loan conditions list is where all of those conditions will show up. In addition to borrower related conditions, there are inspection clarifications, purchase contract updates and appraised value debates that may show up on this list. This will also list prior to doc and funding conditions so that all parties involved can have an idea of the timeline of when things are due.
How Much Am I Qualified For?
Getting a VA loan pre approval letter for a new home purchase is mainly to let everyone involved in the transaction know what type of mortgage money the buyer is approved to borrower from the lender. Sellers will want to know if the loan approval is for a VA, FHA or maybe a Conventional loan. The Pre-Approval Letter is based on loan program guidelines pertaining to an applicant’s debt to income ( DTI) Loan to Value ( LTV) Credit, Property Type and Residence Status.
A complete VA Pre-Approval Letter should let the borrower know the exact terms of the loan amount, down payment requirements and monthly payment, including principal, interest, taxes, insurance and any additional mortgage insurance premiums.
Keep in mind, one of the most important items to remember when looking into financing is that there is sometimes a difference in the amount a borrower can qualify for vs what’s in their budget for a comfortable and responsible monthly payment.
Here are some items borrowers will want to see on their pre approval letter:
- Approved Loan Amount – Base loan amount and possibly gross loan amount (FHA, VA, USDA)
- Status Date and Expiration Date – Most Pre-Approval Letters are good 90 days from when your credit report was run. After 90 days borrowers should touch base with their lender again to update any changes.
- Type Of Mortgage – FHA, VA, USDA, Conventional, Jumbo
- Loan Term –30, 20 or 15 year fixed, ARM (Adjustable Rate Mortgage); if ARM, 1, 3, 5, 7 or 10 year initial fixed period; Interest Only
- Type Of Occupancy – Owner Occupied, Secondary Residence, Investment.
- Mortgage Company Contact Info – Bank or Lender’s Name and Address, Phone, etc.
- Loan Conditions – Document and Funding requirements prior to Approval ( Generally fully ratified purchase contract and acceptable appraisal)
VA Loan Benefits For South Florida Home Buyers:
- 100% Financing , No Down Payment Required. Most conventional loans require that borrowers pay 5% to %20% of the sales price in the form of a down payment. For example, if the sales price is $200,000 the borrower would need to present a $10,000 to $40,000 cash down payment upfront. The VA loan program requires zero down payment, opening doors to financing that may have been difficult to obtain otherwise. This is especially great in South Florida where 100% mortgage financing is nearly impossible to find these days. In fact VA is the only 100% loan available for Miami, West Palm Beach, Delray Beach, Plantation home buyers.
- No Required PMI, or Private Mortgage Insurance. This fee is often required when borrowers of conventional loans are unable to provide at least a 20% down payment. FHA, USDA loans also require a monthly fee. PMI is designed to protect lenders should a borrower default on a loan. Because VA Loans are backed by the US Department of Veterans Affairs, lenders assume less risk, and are able to omit the requirement for PMI. This advantage can end up saving qualified veterans a substantial amount of money.
- Low Fixed Interest Rates. Because VA loans carry the VA guaranty, lenders assume less risk. This enables lenders to offer very competitive interest rates that are often lower than those of many conventional loans.
Contact us today with questions – ph: 800-743-7556
Serving all of South FL – Broward County: Coral Springs, Dania Beach, Davie, Deerfield Beach, Fort Lauderdale, Hallandale Beach, Hillsboro Beach, Hollywood, Lauderdale Lakes, Lauderdale-By-The-Sea, Lauderhill, Lazy Lake, Margate, Miramar, North Lauderdale, Pembroke Pines, Plantation, Pompano Beach, Port Everglades, Sunrise, Tamarac, West Park, Weston. Palm Beach County – Boca Raton, Boynton Beach, Briny Breezes, Canal Point, Cloud Lake, Delray Beach, Highland Beach, Juno Beach, Jupiter, Jupiter Lake Worth, Lantana, Loxahatchee, Manalapan, Mangonia Park, North Palm Beach, Ocean Ridge, Pahokee, Palm Beach, Palm Beach Gardens, Palm Beach Shores, Palm Springs, Riviera Beach, Royal Palm Beach, Sandcut, South Bay, Tequesta, Wellington and West Palm Beach. Martin County Indiantown, Jensen Beach, Jupiter Island, Ocean Breeze Park, Palm City, Sewall’s Point and Stuart. VA Loan Pre-Approval and Pre-Qualified
Existing VA home owners can learn more about the 100% LTV cash out VA refinance program here.