VA Mortgage Eligibility
VA Mortgage Eligibility. If you are a Miami and Fort Lauderdale, Florida veteran who have served to our country, America rewards you with an especial program call VA mortgage loan, which offers you the opportunity to buy a home for you and your family.
The VA mortgage eligibility also provides you a federally guaranteed home, with no down payment. The Department of Veterans Affairs (VA), is the one who establishes the rules of VA mortgage loans for those who may qualify and dictates the terms of the mortgage loans offered, and insure VA mortgage loans against default. VA mortgage eligibility also offer feature flexible requirements, no private mortgage loan insurance (PMI), and extremely competitive mortgage loan rates.
In order to obtain a VA home loan, you must first get a VA Home Loan Certificate of Eligibility. This certificate is issued only through the Veterans Administration and is the first step towards applying for your loan. Veterans, active duty, guard or reserve, and military spouses potentially qualify for this certificate. Keep in mind that the Certificate of Eligibility, while necessary, only allows an eligible individual to apply for a home loan; it does not guarantee a loan approval.
The Difference between VA Loans and the VA Loan Guaranty
The Veterans Administration does not lend money or issue your VA loan. Instead, the VA offers a guaranty on your home loan equal to 25% of the approved loan up to the current year’s maximum. (In 2011 the maximum guaranty amount is $104,250 for a maximum loan of $417,000). Some VA County limits go higher than this amount and can be found on the official website.
The VA Guaranty is protection for the lender in the event of default or foreclosure. The VA guaranty makes your application for a home loan more attractive to the lender and allows you to purchase a home for no money down in most cases. The lender works together with the VA; when the paperwork is filled out and the loan is approved, the mortgage company is the agency that lends you the money and collects your payments.
VA mortgage eligibility offers up to 100% financing the value of a home in Miami, Fort Lauderdale, and the rest of Florida. And will guarantee a maximum of 25 % of a VA mortgage loan amount up to $104,250, which limits the maximum VA mortgage 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 Miami and Fort Lauderdale, Florida veterans must qualify for. They’re not automatically eligible for the VA mortgage loan program.
The VA defines allowable fees and charges that the Miami and Fort Lauderdale, Florida veteran applicant can pay or closing costs that may be charged to the VA mortgage loan applicant. These costs are determined as reasonable and customary by each local VA mortgage loan office in Miami and Fort Lauderdale, 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 VA mortgage loan 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 VA program and varies depending on type of service, mortgage loan amount, down payment and subsequent VA mortgage loan usage (This fee can be paid in cash at closing, but most VA Miami and Fort Lauderdale, Florida 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 homeowner’s insurance is roughly 0.35% of the home’s value but can change based on the insurer.
VA mortgage eligibility offers you lower closing cost than other mortgage loans because VA limits closing cost for Miami and Fort Lauderdale, Florida veterans and allow the seller to pay most or all of those expenses. Many of our borrowers purchase a home with no money due at closing.
So if you are thinking to apply for a VA mortgage loan in Miami and Fort Lauderdale, Florida, you must know all the requirements and guidelines that are described belong.
What are The VA Loan Advantages in Miami and Fort Lauderdale, Florida?
- NO money down – up to 100% financing nationally.
- Low VA mortgage loan interest rates set by approved VA mortgage loan lenders, banks, and mortgage brokers. VA mortgage loan rates are often times lower than conventional, FHA or USDA loan programs. In fact, VA mortgage loan interest rates are some of the lowest rates available today.
- VA Loan Secure 15, 30 year fixed rate or adjustable rate terms with no prepayment penalty.
- Va Loan NO monthly mortgage insurance (PMI) like other mortgage loans. This alone can save home buyers hundreds $ each month on their loan payments.
- Va Loan Closing costs can be paid by the property seller. This limits buyers out of pocket money needed to close.
- Va Loan Minimal assets required qualifying.
- Va Loan Qualifying with a low credit score is possible. Current min is 620.
- Va Loan Eligible Miami and Fort Lauderdale, Florida Veterans can use their VA mortgage loan benefits multiple times.
- VA mortgage loans are for ANY new or existing home. Please note we currently do not permit mobile homes.
- VA mortgage loans offer you other housing-related programs to help you buy, build, repair, retain, or adapt your own home for your personal occupancy.
- Va Loan for Native American veterans the program Native American Direct Loan (NADL) program reduce the interest rate on a VA mortgage loan.
- Va Loan After you obtain a VA mortgage 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. VA Mortgage Eligibility
Who is Eligible for a VA Mortgage Loan in Miami and Fort Lauderdale, Florida?
In order to be eligible and qualify for a VA mortgage loan in Miami and Fort Lauderdale, Florida, 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.
Note: You are not eligible for Va mortgage loan financing only based upon Active Duty of Training in the Reserves or National Guard. You must have 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’re not going to qualify. During periods of war, active personnel must have served for at least 90 days to qualify.
Eligibility Requirements for VA Loans
For VA Loans you must have suitable credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. The home must be for your own personal occupancy. The eligibility requirements to obtain a COE are listed below for Servicemembers and Veterans, spouses, and other eligible beneficiaries.
Your length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits.
Purchase Loans and Cash-Out Refinance: VA-guaranteed loans are available for homes for your occupancy or a spouse and/or dependent (for active duty service members). VA Mortgage Eligibility: To be eligible, you must have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility (COE).
Interest Rate Reduction Refinance Loan (IRRRL): The IRRRL is a “VA to VA” loan, meaning it can only be done if you have an existing VA guaranteed loan on the property. The IRRRL is generally performed to lower the interest and reduce the monthly payment on the existing VA guaranteed loan.
Native American Direct Loan (NADL) Program: The NADL program helps Native American Veterans purchase, construct, improve, or refinance a home on Native American trust lands. Your tribal organization must participate in the VA direct loan program. You must have a valid Certificate of Eligibility (COE).
Adapted Housing Grants: VA helps Veterans with certain total and permanent disabilities related to your military service obtain suitable housing with either a Specially Adapted Housing (SAH) or Special Housing Adaptation (SHA) grant. Learn More
How I Get my VA Certificate of Eligibility (COE) in Miami and Fort Lauderdale, Florida?
VA mortgage loan applicants in Miami and Fort Lauderdale, Florida, must present a certificate of eligibility (COE), which establishes their record of military service, to the VA mortgage loan lender. VA mortgage loans, FHA mortgage loans and other loans insured by departments of the United States government are securitized by the Government National Mortgage Association. VA Mortgage Eligibility
To get your COE you have to check the webpage of the Department of Veterans Affairs VA and find according to your military status the evidence that you need to gather for applying for you COE. You can apply for the COE in several ways, the first one is applying online, for that you have to register on the webpage of the Department of Veterans Affairs (VA), and logging your credentials. The portal will indicate the steps to follow. The second way is applying through a VA lender who has access to the Web LGY system. This Internet-based application can establish eligibility and issue an online COE 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, Miami and Fort Lauderdale, Florida veterans are encouraged to ask their VA 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).
What About The Credit Limit in Miami and Fort Lauderdale, Florida for VA Loans?
VA mortgage loans have their own unique suite of approval guidelines. VA mortgage loan guarantees which lenders like. VA mortgage loans also require the VA mortgage loan lender to verify the VA mortgage loan applicant has a responsible, stable credit history with reliable income that will cover monthly expenses, including their new VA mortgage loan payments, but does not require a minimum credit score. VA mortgage loan lenders, however, do use credit scores when approving VA mortgage loan applications. Most VA mortgage loan lenders require a minimum score of 620 to 640.
Additionally, the VA mortgage loan requires that VA mortgage loan applicants maintain a certain amount of income left over each month after all main expenses are paid. The excess is meant to cover typical family needs, such as food, transportation and so forth and is referred to as residual income. By enforcing residual income requirements, the VA increases the chances of its VA mortgage loan applicants earning sufficient income to meet all financial obligations, and also ensures VA mortgage loan applicants have a cushion in the event of an emergency. VA Mortgage Eligibility
Private lenders who finance the home purchases through VA Loans have an additional set of criteria that a potential applicant must qualify, including debt, income and credit requirements, as well as examine your debt-to-income ratio.
How long is VA Home Mortgage Loan Process in Miami and Fort Lauderdale, Florida?
The duration of a VA mortgage loan buying process in Miami and Fort Lauderdale, Florida take no longer to close than FHA or conventional mortgage loans, and should not take more than 30-45 days from start to finish. For the last eight months of 2014, the average conventional purchase mortgage loan closed in 38.9 days for regular mortgage loans, compared to 39.6 days for VA mortgage loans. So “Why did the lender say that VA mortgage loans take 45-60 days? the reason is that specific lending company use this extra day to close the mortgage loan not VA. You may want to look for another mortgage loan company in Miami and Fort Lauderdale, Florida that can close on your mortgage loan sooner saving you time, energy, and of course, money.
How to Choose a VA Mortgage Loan Lender in Miami and Fort Lauderdale, Florida?
Choose a VA mortgage loan lending institution in Miami and Fort Lauderdale, Florida that can manage your VA mortgage loan. A VA mortgage loan lender can help you review your credit history and determine how much of a VA mortgage loan you can qualify for. Be aware that different VA mortgage loan lenders have different closing costs and other fees, so it pays to shop around in Miami and Fort Lauderdale, Florida. Also, seek for a VA mortgage loan lender who cares and connect with your own real needs and your family’s. As we know VA mortgage 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 mortgage loan applicant must qualify, including debt, income and credit requirements, as well as examine your debt-to-income ratio.
If you are in Miami or Fort Lauderdale, Florida, Call us for a free consultation about VA Mortgage eligibility. VA Mortgage Eligibility