VA Loan Requirements in Miami Fort Lauderdale Florida
VA loans, like other loan programs, require that you can afford the home you’re proposing to finance. Affordability according to a VA lender is a mix between your current monthly household income and your qualifying debt. Lenders use both to arrive at a debt ratio. VA Loan Requirements in Miami Fort Lauderdale Florida. What are some of the things VA lenders evaluate when reviewing your income?
VA lenders can use income from a variety of sources but each must meet a minimum set of requirements in Miami Fort Lauderdale Florida. The first requirement is that the income must be verified as full time and in VA lender world, full time means working at least 30 hours per week for your employer.
If you’re self-employed, qualified income will be taken from your most recent federal income tax returns. Self-employment income must have a minimum two-year history with a sustained amount, with self-employment income showing a year over year increase the most desirable.
Part time income may be used but only if there is at least a two-year history of part time work along with the VA lender determining the part-time income has a likelihood of continuance. Most other income sources that can be used such as income from interest, dividends, disability, retirement or pension must pass a financial litmus test verifying the receipt of such income for the last two years with an expected continuance of at least another three years.
Are There Income Limitations for VA Loans?
No, the VA does not limit income for qualifying VA loan borrowers. Other government-guaranteed mortgage programs can set a maximum income amount to qualify for specific loan programs but the VA has no such requirement.
Regardless if you make $500,000 per year or $50,000 per year, VA lenders underwrite your loan in the exact same manner as it addresses debt to income ratios and affordability.
VA loans do have a unique qualifying guideline that establishes what is called “residual income” that VA borrowers must have.
Residual income is the amount of money left over from all borrower’s paychecks after the mortgage payment, property taxes and insurance, federal and state withholdings and qualifying installment and revolving debt are taken out of the borrower’s gross monthly check.
Qualifying installment and revolving debt include minimum monthly payments toward credit cards, automobile, and student loans. Any monthly debt that appears on a borrower’s credit report can be used to count toward required residual income minimums.
Another debt that may not show up on a credit report that may also be counted is monthly spousal and child support payments and day care. Other expenses such as food, utilities, and entertainment are not included in the residual income calculation.
Residual income requirements in Miami Fort Lauderdale Florida vary based upon such factors as the number of people in the household, the mortgage amount and even the region of the country the property is located. For example, a single borrower in the South must have at least $441 leftover each month while a family of five living in California is required to have at least $1,158 in residual funds. VA lenders keep a residual income chart for you to review at your request or you can simply ask your VA lender if you meet the VA residual income guidelines.
There are certain types of income that do not meet VA lending guidelines. Income that cannot be used to qualify for a VA loan includes gambling or lottery winnings. Unemployment compensation may not be used. One- time performance bonuses may not be used nor any isolated payment to the borrower by an employer.
VA borrowers must also qualify using the income from those living in the household and income from non-occupying co-borrowers like grandparents or others not living in the home cannot be counted.
In essence, if there is no consistent history of the income being received and there is no verified likelihood of continuance as estimated by the VA lender, the income may not be used, regardless of its existence.
VA Loan Requirements in Miami Fort Lauderdale Florida and VA Loan Eligibility
Many veterans and service members don’t realize that they currently meet the VA loan requirements in Miami Fort Lauderdale Florida for a home loan that is underwritten by the government. In fact, only about 10% of the nation’s 24 million veterans have utilized their VA home loan benefits.
If you meet the VA loan eligibility requirements in Miami Fort Lauderdale Florida, you just need to obtain a Certificate of Eligibility, or COE, to open up an array of benefits for your service.
Continue reading to learn more about VA loan requirements in Miami Fort Lauderdale Florida, how to qualify for a VA loan, and how it can benefit you.
Are you interested in starting the application process for a VA mortgage loan?
VA Loan Eligibility – Who is Eligible?
Here’s a look at who meets the VA loan requirements in Miami Fort Lauderdale Florida for government-backed home loans (loans underwritten by the U.S. government):
Traditionally, service members who served on active duty for 90 days during wartime or 181 days during peacetime, but more recently a minimum of two years of service have been typical VA loan requirements in Miami Fort Lauderdale Florida.
Members of the National Guard or Reserves who served at least six years
Surviving spouses – who have not remarried – of a service member killed in the line of duty or as a result of a service-related injury
Veterans discharged due to a service-related injury.
Get Your Certificate of Eligibility (COE) in Seconds
One of the VA loan requirements in Miami Fort Lauderdale Florida is a Certificate of Eligibility (COE). A Certificate of Eligibility is the only reliable Proof of Eligibility on which we, as the lender, may rely, except in the case of an Interest Rate Reduction Refinancing Loan (IRRRL).
Completing a Certificate of Eligibility is often faster through an approved lender like VAMortgage.com than with the Veterans Administration.
Thanks to the Automated Certificate of Eligibility technology, VAMortgage.com can pull a COE in seconds – versus waiting weeks through the VA. Although eligibility doesn’t guarantee loan approval, VAMortgage.com is strongly committed to securing a VA loan for every veteran and service member who qualifies. Veterans may obtain a COE online through the VA.
Benefits of the VA Home Loan Program
VA loan requirements in Miami Fort Lauderdale Florida are designed to ensure the benefits of a government-backed loan are available to all service members and veterans who have earned the privilege through their sacrifices.
The VA Home Loan Program has already helped more than 18 million veterans and active duty service members achieve home ownership since 1944. After more than 67 years of service, the VA Home Loan Program remains one of the most progressive lending programs on the market.
Since the Department of Veterans Affairs ensures up to 25% of each VA home loan, approved lenders like VAMortgage.com have the confidence to provide eligible military members with low-interest rates and flexible loan terms.
Other benefits of a VA home loan include:
No monthly mortgage insurance required
No down payment except in cases where the mortgage amount exceeds the VA limit for your county. In such cases, the down payment is 25% of the amount above the county VA limit.
Regulated closing costs
Do you want to determine if you can afford monthly mortgage requirements in Miami Fort Lauderdale Florida? Click here to calculate your monthly payment based on current VA mortgage rates.
Discover Flexible Options Designed to Help You
There is also a great deal of flexibility built into the VA home loan application process, which allows:
Reduced income requirements in Miami Fort Lauderdale Florida
Reduced credit requirements in Miami Fort Lauderdale Florida
Higher debt-to-income ratios
Approved lenders like VAMortgage.com don’t need to see the perfect credit. As a result, our VA loan eligibility requirements in Miami Fort Lauderdale Florida allow us to help many veterans who might not otherwise secure financing. In fact, about 80% of VA loan borrowers could not have qualified for a conventional loan.
Helping veterans with getting a home loan is our nation’s way of saying “Thank You” to the millions of men and women who have served us so faithfully over so many years.
Get Started Today
If you have any questions about VA loan requirements in Miami Fort Lauderdale Florida, VA loan eligibility or anything else you feel we can help you with, don’t hesitate to give us a call. If you’d prefer to get the process started right away, you can click here to fill out our online pre-application for a VA mortgage home loan!
VA Mortgage helps active service members and veterans with loans designed especially to assist you. Contact us today so we can help you with the benefits you deserve.
There are many benefits to VA loans, relaxed credit score requirements in Miami Fort Lauderdale Florida are one of them. The Veterans Administration does not have a minimum required credit score for a VA loan. However, lenders set their limits on credit scores. Many lenders will require a 620 credit score for VA, but some are able to go down to 580. VA home loans have NO down payment. You do not have to pay mortgage insurance with VA loans either. You should have a good credit history with no late mortgage payments within the last 12 months. You also need a Certificate of Eligibility from the VA, which you can get through the U.S. Department of Veterans Affairs.
The Veterans Administration makes mortgage loans available to U.S. veterans who meet the VA Loan guidelines. They do not act as a lender but does guarantee the loans, making it more desirable for lenders to make loans to veterans. Because VA requires no down payment and no minimum credit score, it offers many veterans with poor credit or limited resources the opportunity to become homeowners. While the VA credit score requirement is never an issue, other factors can make buying a home difficult for people with low FICO scores.
VA Loan credit score requirements in Miami Fort Lauderdale Florida
Lenders do not have to follow the credit score requirements in Miami Fort Lauderdale Florida set by the VA. In fact, they typically require a credit score of 620 or higher. Yet, there are lenders who accept loan applicants with lower scores. The key to successfully purchasing a home with a lower credit score is to find the right lender who will work with you to help you accomplish your goal of owning your own home.
If you have a low credit score you may be able to qualify if you meet these conditions
- Have no or limited debt in collections.VA Loan credit score requirements in Miami Fort Lauderdale Florida
- Have no outstanding judgments against you.
- Have a steady income.
- No more than one late payment in the last 12 months
- If your poor credit is due to an unusual set of circumstances and you have since resumed making timely bill payments, you may be considered if you can give a reasonable explanation for your low credit score, it is up to the lender’s discretion to decide whether to extend the loan or not.
Finding the Right VA Lender
If you have never bought a home before or never bought using a VA loan, finding the right lender on your own can seem next to impossible. You need a reputable lender who knows how to overcome bad credit and work with the Veterans Administration to secure your home loan. A lender who is attentive to the needs of veterans wants to extend credit to as many veterans as possible, acknowledging that the lack of a specific credit score VA loan requires was chosen for to help veterans who have different challenges than others buying homes.
VA Loan requirements in Miami Fort Lauderdale Florida for homes: Things you should know before applying for VA Loans
A booming demand has been noticed for Veterans Affairs mortgages which are commonly known as VA loans. These mortgages generally do not require a down payment and are accessible to both military veterans and active military veterans. Mortgages insurances are not required as VA loans are made through private lenders and are guaranteed by the Department of Veterans Affairs. Also, there is no minimum credit score requirement. VA Loan requirements in Miami Fort Lauderdale Florida are easier to qualify than the conventional mortgages as it remains one of the few mortgages options for borrowers who doesn’t want to have down payment.
The Department of Veterans Affairs U.S.is not a direct lender. The loan is generally made through a private lender and partially guaranteed by the VA as long as the guidelines are met.
Requirements in Miami Fort Lauderdale Florida for VA Loans:
There are precisely two categories for VA Loan requirements in Miami Fort Lauderdale Florida for homes: wartime and peacetime. A potential home buyer must satisfy only one of the service requirements in Miami Fort Lauderdale Florida that have been set forth by the Department of Veterans Affairs in order to be eligible for a VA Loan.
Service Members and Veterans of the United States Military receive their VA Home Loan Benefit. VA Loan Requirements in Miami Fort Lauderdale Florida for homes eligibility depends upon their service.
Active Duty Military
Those on active duty must have at least 90 continuous days of service.
The veterans who are discharged from active military duty must have served at least 181 days on active duty. Although if they do not meet the minimum service requirements in Miami Fort Lauderdale Florida there are chances that they may still be eligible. The chances are if they were discharged due to hardship or expediency of the government or cutback-in-force, certain medical circumstances or a service-related disability.
Current National Guard and Reserve Members
The members of the National Guard or Reserves must serve at least six years.
National Guard and Reserve Members called to active duty
For those members of the National Guard or Reserves called to duty under Title 10 must serve at least 90 days.
In some instances, a spouse of a veteran is eligible for VA Home Loan Benefits. Also, the un-remarried spouses of veterans died on active duty or from a service-connected disability are eligible.
VA Loan Certificate of Eligibility:
Applicants also require a Certificate of Eligibility (COE) after meeting the basic service requirements in Miami Fort Lauderdale Florida. The VA approved lenders use this certificate to verify the eligibility of the candidate for home loan benefits. The COE is not required to start VA Loan Requirements in Miami Fort Lauderdale Florida for homes process.
Advantages of VA Loans:
VA Loan Requirements in Miami Fort Lauderdale Florida for homes is a major loan program for many veterans, service members, and military families. Home requirements in Miami Fort Lauderdale Florida for VA loan are flexible, government-backed loans that come with significant benefits of homeownership to veterans who otherwise thrash about obtaining finance for a home.
The major benefits of Home requirements in Miami Fort Lauderdale Florida for VA loan are that it requires no down payment or private mortgage insurance. They provide characteristic competitive rates and terms which allow capable borrowers to purchase a home effortlessly.
The signature benefits of VA Loan Requirements in Miami Fort Lauderdale Florida for homes are discussed below:
No down payment
It is difficult for service members to buy money and earn credit as they constantly are on the move. With the Home requirements in Miami Fort Lauderdale Florida for VA loan, the qualified borrowers can finance cent percent of the home’s value without struggling with their pocket.
No Private Mortgage Insurance
The conventional lenders are required to pay private monthly mortgage insurance by the borrowers unless they are able to put down at least 20 percent. This task is difficult for many veterans. But with a VA Loan, there is no PMI as the federal government backs all VA Loans. VA Loan is advantageous as it allows the veterans to build more equity in their house along with successfully saving thousands of dollars over the mortgage.
Competitive Interest Rates
Assuming the risk on housing the banks finance the loans and interest rates on loans. The VA backs the Home requirements in Miami Fort Lauderdale Florida for VA loan with a guaranty thus the financial organizations carry less hazard and offers lower interest rates which are typically 0.5 to 1 percent than the conventional interest rates.
Basic Allowance for Housing
The VA loans provide Basic Allowance for Housing (BAH) for qualified active military members. The Basic Allowance for Housing can be accounted as an effective income, which allows them to pay some or all of their monthly mortgage costs.
No Pre-Payment Penalty
As there are different types of loans, paying off a home loan before it matures results in a pre-payment penalty. The VA Loan allows borrowers to pay off their home loan their desired point without any worry regarding a pre-payment penalty.