Like most mortgage loans today, there is a set of criteria that must be met to qualify. VA mortgage eligibility Tampa is no exception, and there are certain criteria that a veteran must meet in order to qualify. Not only must the veteran be able to prove he or she was a member of the armed forces, but loan approval also requires a Certificate of Eligibility. An applicant must also have a credit score of at least 600 and must plan to live in the home as a primary residence after the purchase is complete.
It’s essential to note that VA Loans are approved for the appraised value of the home, so other costs associated with purchasing the home must be provided by the borrower. VA loan application may also be made by surviving military spouses who have become widowed and who have not remarried. Low VA interest rates and fixed rate terms make this program perfect for those that qualify.
VA Housing Occupancy Requirements
One of the most vital parts of the VA Loan process is the occupancy requirement. Millions and millions of VA Loans have been approved in the United States since the program’s introduction in 1944, but veterans taking advantage of this program must live in the home when they apply for a mortgage. A veteran cannot purchase a property with a VA Loan and then use the property as a rental.
Although there are some rare circumstances where a home may be used as a rental, approval for this type of use is unusual. Once the loan agreement has been drawn up and signed, veterans have two months to move into the home. This time limit generally means that a home must be “move-in ready” and qualify as appropriate housing under the HUD rules.
Approved VA Property Types
VA Loans aren’t available for every type of Florida property and also come with geographic restrictions. A condominium in a large metropolis might not be approved whereas a smaller complex in a small town might gain approval. Home options for veterans include:
- Single family homes
- Condos and townhomes
- Existing VA home loan refinance
- New construction
Note that the entire property for a condo or townhome must have been approved as a valid VA Loan area.
Credit Restrictions and Income Requirements
VA Loans are generous regarding credit score and income requirements. Easily obtainable requirements mean many veterans have a shot at owning their own home. A major bank might require a credit score of at least 680, but veterans can apply for a VA Loan with a score of just 600. Government backing of the loans means high approval rates and low default numbers.
The Debt to Income ratio (DTI) required for application of a VA Loan is 41%. This means that if a veteran makes $50,000 a year, he or she cannot have monthly debt payments that exceed $1708 a month. It’s imperative to realize that a homeowner must have funds above and beyond the amount paid into the mortgage for things like monthly utilities, food, and transportation.
VA Mortgage Processing Documents
There’s a lot of paperwork required during a mortgage application these days in 2014, and VA Loans are no exception. Before starting the application process, a veteran must gather the following documents:
- Proof of service
- Certificate of Eligibility (COE)
- Social Security card
- Proof of income
- Listing of assets and other property
- Residency history of the last 24 months
Missing a few items above? no problem, call us and we can help. Note that a veteran must have served for a minimum amount of time to qualify for a VA Loan.
VA Loans do not require a down payment as the program is 100% financing in Florida. VA allows permits the home seller to pay the buyers closing costs and pre paid reserves. However, what if the seller does not pay your VA closing costs and you are responsible for this? In Florida the VA closing costs and pre paid escrows (taxes, insurance) to the buyer will generally average 3% of the purchase price. You need to have this money saved assuming the home seller is not paying this cost for you.
VA Mortgage Hub is Florida’s leading 100% VA loan resource serving you 7 days a week. Questions? Please call us at ph: 800-743-7556 or just submit the quick Info Request Form on this page.
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