Advantages of a VA Loan
VA loans are one of the few remaining true 100% programs still available in the market today. Further, the loans are approved a lot faster as compared to other loans available in the market.The procedural formalities involved in such loans are not difficult to complete.
Instead they have a VA funding fee which as mentioned earlier is typically financed into the loan for you. Therefor the total loan amount can be higher than 100% LTV of the appraisal or purchase price! The seller can pay up to 4% of the buyers recurring and non recurring closing costs. With this loan you can purchase a home without putting any money down.When you take a veterans loan, you are not required to pay for mortgage insurance.
Mortgage insurance is also not required from eligible veterans. What you do instead is pay for VA funding fee that is most of the time integrated to the principal of your loan. Without spending for the mortgage insurance, this type of loan would definitely help you save hundreds of dollars every month compared to the orthodox FHA financing. Hold on, what is it, you ask?
Close the loan and move into your new home.Who is Eligible?Veterans who were honorably released from active duty service, during World War II and later periods are eligible for VA loan benefits.
Veterans should have served ninety days during the time of war or a total of 181 days during peacetime who were discharged honorably.
The eligibility of the surviving spouses is also covered by the rules.
The eligibility of the surviving spouses who may have gotten married again after the age of 57 or on or after the 16th of December is not at all guaranteed.
Reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were honorably released from the period of activation are eligible.Reservists.
At least 181 days of active duty, active or discharged, honorably or medically discharged under honorable conditions., and around a 45% debt to income ratio.
Those who began service after the 7th of September 1980 should have a two-year requirement for those enlisted while for veteran officers, the date should be after the 16th of October 1981.
Un-remarried spouses widowed as a result of a veteran’s service or as a result of service-connected injury or disease contracted while serving were extended the same VA loan entitlements as veterans.
Private appraisers usually estimate the value which is favorable to the lending companies. As you can see this loan product will allow you purchase a home with no money out of pocket and will save you hundreds monthly with it’s lack of mortgage insurance coverage. This is just one option for clients still looking for 100% financing in Florida.
Clients looking for 100% financing can use this option, among others.Another benefit of these loans is that you can take out extra cash for adding environmentally friendly features to your new house. You should speak with a loan professional about exactly how this is accomplished. Saving for a down payment can increase the amount of home you’ll be able to buy and help mitigate the overall cost of the home.