VA Loan Guidelines
VA Loan Guidelines. Florida is a beautiful state with a lot to offer, especially for veterans who want to buy a home through the VA loan program.
Today the population of Florida, which exceeds 18 million, is 23 percent Hispanic and 16 percent African-American. The economy of Florida, which has shifted many times since its inception; driven by the nineteen metropolitan areas falling within Florida’s boundary, tourism, biomedical, life sci VA Loan Guidelines Floridances, health-care research and retirement are the state’s most prominent industries.
The veteran population of Florida is roughly 1.5 million, ranking it with California and Texas as the states with the highest concentration of veterans.
Bordered by the Gulf of Mexico and the Atlantic Ocean, Florida is the 4th most populous state in the country. With 237 sunny days a year, tropical weather, and pristine beaches, residents often say, “Florida has it all.” For many people, living in Florida is like being on vacation every day. In addition to the stunning natural beauty of Florida, there are also several major metropolitan areas, including Jacksonville, Miami, Orlando and Tampa. All these make Florida the perfect place for a VA loan home purchase.
VA Loan Guidelines, there’s no better way for military members and veterans to finance that Florida beach home than with a VA loan. The increasing population in Florida of veterans is due to the military bases which are being built in Florida.
Right now There are over 20 military installations in the state of Florida. They include:
- Atlantic Undersea Test and Evaluation Center (AUTEC).
- Blount Island Command.
- Camp Blanding.
- Corry Station Naval Technical Training Center.
- Eglin Air Force Base
- Hurlburt Field
- Integrated Support Command (ISC) Miami
- MacDill Air Force Base
- Naval Support Activity Panama City
- Naval Warfare Center
- Patrick Air Force Base
- Naval Air Station Jacksonville
- Naval Air Station Key West
- Tyndall Air Force Base
- Naval Air Station Pensacola
- Naval Air Station Whiting Field
- USCG Air Station Clearwater
- Naval Station Mayport
- Naval Hospital Jacksonville
- USCG Auxiliary 7th District
Another advantage about Florida are the popular tourist destinations, which include the Walt Disney World Resort, Universal Orlando Resort, Busch Gardens, and SeaWorld. Approximately 60 million tourists travel to Florida annually.
Florida provides property tax exemptions to disabled veterans meeting certain criteria. A $5,000 exemption is available to veterans with a service-related disability of 10 percent or more.
Those who suffer a permanent and complete disability are entitled to a total exemption. Applying for VA home loan program is the easy way to buy a home in Florida.
VA Loan Guidelines Florida. The cost of living in the Sunshine State is 1.3 percent lower than that of the national Average. The unemployment rate of 5.7 percent is also below the American average, and the state has experienced job growth of over three percent.
Florida is an appealing destination for veteran homeowners because of the array of great deals that can be found on properties, including short sale and foreclosed homes. If you’re planning to buy a home in Florida using a VA home loan, a termite inspection is required. Heating systems are not required in a number of the south Florida counties, including Broward, Charlotte, Collier, Dade, Glades, Hendry, Lee, Martin, Monroe and Palm Beach.
Additional guidelines include the fact that Staff Appraisal Reviewers can change the appraiser’s estimate of value (but rarely will), and refinancing of new construction condominiums may not be eligible. Buying a new construction condo is permitted, but the condo has to be approved by the VA and the borrower can’t receive a gift, grant, down payment assistance or a loan from a family member to cover closing costs. Attached new construction PUDs are also required to meet a 50 percent presale requirement. VA Loan Guidelines
What is a VA Loan?
VA loans are home mortgages for veterans guaranteed by the Department of Veterans Affairs (VA), and designed to offset common financial challenges faced by military families and veterans, and to simplify the approval process with a VA home loan. Eligible service members and veterans can buy a home with little or no down payment. VA Loan Guidelines
The VA home loans typically have lower interest rates than conventional mortgages loan, allow for higher debt-to-income ratios and lower credit scores, and they don’t require private mortgage insurance, because the VA home loan guarantees a portion of your loan, this mean a significant monthly savings. The VA home loan also offers limitations on buyer’s closing costs, and an appraisal that informs the buyer of the property value. For most loans on new houses, construction is inspected at appropriate stages, and a one year warranty is required from the builder. VA loans also performs personal loans servicing and offers financial counseling to help veterans having temporary financial difficulties.
How Can I Get a VA Loan?
To get a VA loan, you need to be part of the Veteran’s active military personnel or military families, and make sure that you are eligible for a VA loan. Second you need to Shopping around to Find the best lender who participates in the VA mortgage loan program, and offer you great mortgage loan terms and lower closing cost. Third get your Certificate of Eligibility from the VA to prove that you are eligible for a VA mortgage loan. And finally apply for your VA mortgage loan; your VA lender will work with you to complete your financial process.
Who is Eligible?
In order to qualify for a VA Loan, you must be an active-duty or retired member of the armed forces with at least have served 181 days during peacetime, 90 days during war time, or 6 years in the Reserves or National Guard, or have a discharge other than dishonorable. The spouse of a service member who was killed in the line of duty or as the result of a service-related disability, may also qualify for a VA loan.
Note: you are not eligible for a VA financing only based upon Active Duty for Training in the Reserves or National Guard. You must had been activated under the authority of title 10 U.S code as was the case for the Iraq/Afghanistan. If you have served for less than two years, then you are not going to qualify. During periods of war, active personnel must have served for at least 90 days to qualify for a VA loan.
How do I Get my Certificate of Eligibility (CEO)?
VA applicants must present a certificate of eligibility, which establishes their record of military service, to the lender. VA loan guidelines, FHA loans and other loans insured by departments of the United States government are securitized by the Government National Mortgage Association.
To get your CEO you have to check the web page of the Department of Veterans Affairs(VA), and find according to your military status the evidence that you need to gather for apply for you CEO. You can apply for the CEO in several ways, the first one is applying online, for that you have to register in the web page of the Department of Veterans Affairs(VA), and logging your credentials. The portal will indicated the steps to follow. The second way is applying through a VA lender who has access to the Web LGY system. VA Loan Guidelines
This Internet-based application can establish eligibility and issue an online CEO in a matter of seconds. Not all cases can be processed through Web LGY, only those for which VA has sufficient data in their records. However, Veterans are encouraged to ask their lenders about this method of obtaining a certificate. And the third one is applying by mail, all the formats are in the web page of the Department of Veterans Affairs (VA). VA Loan Guidelines
Limits of VA Loan?
VA loans offer up to 100% financing the value of a home and will guarantee a maximum of 25 % of a VA home loan amount up to $104,250, which limits the maximum VA loan amount to $417,000. usually, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. All veterans must qualify for. They’re not automatically eligible for the VA loan program.
What are The VA Loan Advantages?
- NO money down – up to 100% financing nationally.
- Low VA loan guidelines interest rates set by approved lenders, banks and mortgage brokers. VA loan rates are often times lower than conventional, FHA or USDA loan programs. In fact VA loan guidelines interest rates are some of the lowest rates available today.
- Secure 15, 30 year fixed rate or adjustable rate terms with no prepayment penalty.
- NO monthly mortgage insurance (PMI) like other home loans. This alone can save home buyers hundreds $ each month on their loan payments.
- Closing costs can be paid by the property seller. This limits buyers out of pocket money needed to close.
- Minimal assets required to qualify.
- Qualifying with a low credit score is possible. Current min is 620.
- Eligible Vets can use their VA loan guidelines benefits multiple times.
- VA home loans are for ANY new or existing home. Please note we currently do not permit mobile homes.
- VA loans offer you other housing-related programs to help you buy, build, repair, retain, or adapt your own home for your personal occupancy.
- For Native American veterans the program Native American Direct Loan (NADL) program reduce the interest rate on a VA loan.
- After you obtain a VA loan, you can apply for different refinance plans or the Adapted Housing Grants program (for Veterans with a permanent and total service-connected disability purchase), which allow you to lower your current interest rate, or to remodel and modify your house.
What is VA Loan Cost?
The VA defines allowable fees and charges that the veteran applicant can pay, or closing costs that may be charged to the applicant. These costs are determined as reasonable and customary by each local VA office in Florida. All other costs in the transaction are considered non-allowable and generally paid by the seller when you are purchasing a new home or by the lender when you are refinancing your current VA mortgage loan.
Between the cost that you have to consider, are the VA Funding fee which is paid to the VA to help fund the program and varies depending on type of service, loan amount, down payment and subsequent VA Loan usage (This fee can be paid in cash at closing, but most applicants choose to add this cost into their monthly payments), property taxes which generally are estimated to be 1.2% of the home’s value, but may vary based on your location, and annual homeowners insurance is roughly 0.35% of the home’s value but can change based on insurer.
VA loan guidelines offers you lower closing cost than other loans, because VA limits closing cost for veterans and allows seller to pay most or all of those expenses. Many of our borrowers purchase a home with no money due at closing. VA Loan Guidelines
How to Choose a VA Lender?
Choose a VA lending institution in Florida that can manage your VA home loan. A lender can help you review your credit history and determine how much of a VA loan you can qualify for. Be aware that different lenders have different closing costs and other fees, so it pays to shopping around. Also seek for a lender who cares and connect with your own real needs and your family’s.
As we know VA loan is flexible with the requirements and have their own unique suite of approval guidelines, even though private lenders who finance the home purchases have an additional set of criteria that a potential VA applicant must qualify, including debt, income and credit requirements, as well as examine your debt-to-income ratio. Here are described some financial definitions that would help you to understand more what lenders ask for.
VA home loans have their own rules and guarantee which lenders like. VA loans also require the lender to verify the applicant has a responsible, stable credit history with reliable income that will cover monthly expenses, including their new loan payments, but does not require a minimum credit score. Lenders however, do use credit scores when approving VA loan applications. Most lenders require a minimum score of 620 to 640.
Additionally, the VA requires that the VA applicants maintain a certain amount of income left over each month. This after paying all main expenses. Furthermore, the excess is meant to cover typical family needs; such as food, transportation and so forth. Consequently, this is what we call residual income. By enforcing residual income requirements, the VA increases the chances of its applicants earning sufficient income to meet all financial obligations, and also ensures that VA applicants have a cushion in the event of an emergency.
Debt-to- Income Ratio:
Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. Furthermore, this number helps lenders measure your management of the payments you make every month to repay the money borrowed. Additionally, to calculate your debt-to-income ratio; you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is the amount of money you earn before you take out your taxes and other deductions. For example, if you pay $1000 a month for your mortgage and another $150 a month for an auto loan and $350 a month for the rest of your debts; then your monthly debt payments are $1500. ($1000 + $150 + $350 = $1500). If your gross monthly income is $5000, then your debt-to-income ratio is 30 percent. ($1500 is 30% of $5000.)
Evidence from studies of mortgage loans suggest that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments. The 43 percent debt-to-income ratio is important. Because, in most cases, that is the highest ratio a borrower can have and still get a qualified mortgage.
How long is VA Home Loan Process?
The duration of a VA home loan buying process take no longer to close FHA or conventional loans. Furthermore, it should not take more than 30-45 days from start to finish. Additionally, for the last eight months of 2014, the average conventional purchase loan closed in 38.9 days for regular loans. This contrasts with the 39.6 days for VA loans. Consequently, there’s not much difference between them. So “Why did the lender say that VA loans take 45-60 days?”. The reason is that specific lending company use this extra days to close the loan not VA. VA Loan Guidelines
The truth is the VA really limits his involvement. So saying that VA Loans take longer is really not fair to the VA or the Veteran for that matter. Furthermore, if you are currently working with a lender that quoted you 45-60 days, or is just lagging altogether; then you may want to look for another mortgage loan company that can close on your loan sooner. Consequently you save more time, energy, and of course, money. VA Loan Guidelines
Current VA Limits for Florida Counties
Although VA guaranteed loans don’t have a maximum dollar amount, lenders selling their VA loans in the secondary market must limit the size. Furthermore, the size must be the maximums the GNMA (Ginnie Mae) prescribes. Hence, we list them below. VA Loan Guidelines
Single Family Home ($0 DOWN AND UP TO)
|County Name||Single Family Home ($0 DOWN AND UP TO)||County Name||Single Family Home ($0 DOWN AND UP TO)|
|ALACHUA||$417,000.00||HARDEE||$417,000.00||OKEECHOBEE||$417,000.00||BAKER||$417,000.00||HENDRY||$417,000.00||ORANGE||$417,000.00||BAY||$417,000.00||HERNANDO||$417,000.00||OSCEOLA||$417,000.00||BRADFORD||$417,000.00||HIGHLANDS||$417,000.00||PALM BEACH||$417,000.00||BREVARD||$417,000.00||HILLSBOROUGH||$417,000.00||PASCO||$417,000.00||BROWARD||$417,000.00||HOLMES||$417,000.00||PINELLAS||$417,000.00||CALHOUN||$417,000.00||INDIAN RIVER||$417,000.00||POLK||$417,000.00||CHARLOTTE||$417,000.00||JACKSON||$417,000.00||PUTNAM||$417,000.00||CITRUS||$417,000.00||JEFFERSON||$417,000.00||SANTA ROSA||$417,000.00||CLAY||$417,000.00||LAFAYETTE||$417,000.00||SARASOTA||$417,000.00||COLLIER||$417,000.00||LAKE||$417,000.00||SEMINOLE||$417,000.00||COLUMBIA||$417,000.00||LEE||$417,000.00||ST.|