VA Mortgage in FloridaVeterans can buy a home with no money down using their VA entitlement.
Florida VA Mortgage Program
Lots of veterans, active duty, and retirees alike utilize the Florida VA mortgage program not only because Florida is a great place to retire but because we have so many military bases. The Veterans Administration has an excellent home buying benefit to those who have served in our armed forces. The $0 down VA mortgage is a great program with lots of flexibility on credit and closing costs. This program is truly meant to keep the costs of the veteran to a minimum while looking out for the best interest of the borrower for the long term. There is no monthly mortgage insurance with VA financing, only the up front funding fee. There is no other government loan program that can boast this benefit to the borrowers.
I Served but do I Qualify?
In order to use the VA home mortgage program you need to obtain your certificate of eligibility. You should qualify for your certificate of eligibility if you served 24 months in active duty status from 1990 to the present. During prior combat theaters less time may actually qualify you. For more information on obtaining your certificate of eligibility and detailed qualification requirements visit the VA purchase eligibility page.
Okay I Qualify, What Now?
In order to get your certificate of eligibility you will need a clear copy of your DD form 214. If you don’t have your DD-214 you can order it here. We can not order this for you. However we can order your certificate of eligibility if you have your DD-214. Or you can order it yourself on the VA site.
A VA mortgage in Florida has a maximum of $417,000, which is typically the same throughout the country. For first time users the up front funding fee is going to be 2.15%. For second time users its 3.3%. So just increase your loan amount by that much unless the seller or you wants to pay the funding fee instead of financing it. For a detailed chart of the funding fee break down see below. There are no geographic limitations with this program like there is with the $0 down USDA program. You can also use the VA program to buy a mobile home, or manufactured home.
Seller Concessions for Closing Costs
The seller can contribute up to 4% of the sales price towards the veterans closing costs. However what is included in the term closing costs is important. Because items like pre-paids (home owners insurance and property taxes) are not included and can be funded by the seller. Usually the seller can pay for all of the veterans costs associated with their home purchase if the deal is negotiated that way. With a Florida VA mortgage the seller is typically paying for the owners title insurance and the Florida doc stamps.
Credit Score and Income
The VA still has credit score requirements and you must show income capable of substantiating your new mortgage payment. We go down to a 600 middle fico credit score for our VA borrowers. Residual income may play a factor in qualifying for your Florida VA mortgage when purchasing a home that brings your debt to income ratios higher than the normally accepted standards. Any past collections could be an issue. One benefit of the Florida VA mortgage program however is the seller can contribute towards your credit collections.
Second Tier VA Financing
You may be able to qualify to use your VA benefit on a second home or after a VA foreclosure. The VA guarantees 25% of the maximum loan amount available, as long as they can do that then you do not have to make a down payment. The maximum loan amount for most in the country $417,000. That means most veterans have an entitlement equal to $104,250. If the veteran only buys a home for $200,000 then they are only using $50,000 of their available $104,250 entitlement. Let’s say they had a VA foreclosure on a $200,000 home. They would have used $50,000 of their entitlement but $54,250 is still available. If the VA only needs to guarantee 25% of the purchase price to allow for $0 down financing then that means $54,250 is 25% of $217,000. They could still buy a $217,000 home with no money down. The same goes in the event of a circumstance where the veteran needs to move. The VA is specific in that there has a to a viable reason for the veteran to move, for example a base change, or family needs. If that viable reason exists then the VA will allow you to you use your VA benefit again without selling your current home. So yes indeed, it is actually possible to have two VA home loans at the same time utilizing the Florida VA mortgage program.
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Author: Keith Meredith