Among the best benefits veterans receive are VA home loans – often referred to as the “best home loan,” however, only 6% of veterans take advantage of this benefit.
Here at Florida mortgage company, we make it simple for you to utilize your benefits. It is even possible to check your eligibility if you do not have your DD-214. As a result, we make it easier than ever to take advantage of your VA home loan benefits.
VA Benefits: Why Use Them?
Veterans can get VA financing with no money down, which is a significant advantage. The benefit of using your VA home loan is compelling enough to consider it. The maximum loan amount is also not set – as long as you meet the requirements, you can borrow the amount you need.
To prove your entitlement to VA benefits, you need to provide evidence of your eligibility. There is a good chance you qualify for eligibility if you served at least 181 days during peacetime after leaving the military with anything other than a dishonorable discharge.
The VA loan offers the following benefits as well:
Guaranteed by the VA
The VA guarantee encourages lenders to write VA loans; they are guaranteed to get paid back by the VA should the borrower default. As a result, a lot of lenders write VA loans.
Fees are affordable
You don’t have to worry about high closing costs since the VA only lets veterans pay specific fees. The seller can even pay 100% of your closing costs, so you needn’t worry about closing costs.
Flexibility in guidelines
It is not possible to find a flexible loan today. There are very loose VA guidelines, making it easy to secure financing for veterans. Our experience helping Veterans makes it possible for us to structure your new loan for the best possible experience-we know how to avoid the obstacles Veterans face.
There is no monthly PMI
Veterans who obtain VA loans are not subject to paying PMI premiums if they have a down payment of less than 20%. As a result, veterans are typically able to save $1,000 per year compared to conventional mortgages with PMI.
Rates are lower
Our VA loan rate is competitive with that of our conventional loan counterparts. Typically, VA loan interest rates are lower than their conventional loan counterparts.
If your credit history is a little shaky or you had some financial hiccups in the past, but it hasn’t been long enough to qualify for a mortgage, you should consider your VA benefits. The Florida VA loan program we offer is one of the most flexible and forgiving programs around. If you use your VA benefit, your chances of securing a loan will be much higher than if you wait to use conventional financing.
How to Apply for a VA Loan
Veterans can utilize their VA benefits so efficiently with the following simple factors:
Maximum loan amount
A down payment is not required for veterans who borrow $548,250 or less for a Florida property. But, if you borrow more than $548,250, you must pay a 25% down payment on the difference between the loan amount and $548,250. For instance, if the purchase price is $558,250, the veteran would need to make a down payment of $2,500.
Down payment not required
Using a VA loan, you have no down payment requirement, and if your seller covers your closing costs, you can walk into the closing table with no cash.
An income and employment that are stable
Also, you should be able to demonstrate a stable income and job for at least two years.
Credit score must be 640 or higher
Veterans with credit issues can still borrow from their VA loan because this is much lower than conventional loans.
The interest rate
Among the low-interest rates available in the market are VA loans.
A prepayment penalty is not applicable
You are free to pay off your VA loan at any time without incurring penalties.
Fees charged by the VA
The VA funding fee is one of the reasons many people do not use their VA loan benefits. Let’s clarify the facts.
It’s important to note that, while the VA Funding Fee is an upfront fee, it can be rolled into your VA home loan, so it’s not an out-of-pocket cost for you. In addition, only a few extra dollars are added to the payment since it is financed into your new loan.
Typically, the veteran using the benefit pays a 2.3% funding fee, which means the VA receives 2.3% of the loan amount to provide the benefit. However, even though it’s an upfront fee, you can add it to your loan amount if you do not have the funds on hand, or the seller can pay it for you.
Final verdict
There is a loan for every type of borrower, from high credit borrowers to people who have had some hiccups.
Florida mortgage company has specialists who work with veterans, helping them understand their benefits, determining their eligibility if they don’t have it, and walking them through the process.
To learn more in detail about how we can help you, contact us today.
