What is a VA loan?
Department of Veterans Affairs (VA) Secured Mortgage Loans are made to help service members, Veterans, Reservists, National Guardsmen, and certain surviving spouses to buy, retain, or adapt a home. They can also help refinance your loans.
VA does not make loans but sets the rules for who qualifies, agrees to the terms under which mortgage loans can be offered, and guarantees all loans made under the program. Most VA loans are available with 0% downpayment.
You are probably eligible if one of these conditions applies:
- Served 90 days of active duty during a time of war.
- Served 181 days of active duty during peacetime.
- Served six years in the reserves or national guard.
- You are the surviving spouse of a service member who died in the line of duty or as a result of a service-connected disability.
- No initial fee required – 100% financing.
- Flexible credit and qualifying guidelines – you don’t need perfect credit to qualify.
- Lower interest rates – generally well below most conventional loan options.
- No monthly mortgage insurance.
- Finance the financing fee – you can add the financing fee to your loan.
- Seller can pay up to 6% of closing costs.
- Donation money can be used for closing costs.
- No prepayment penalty – sell or refinance at any time without paying a penalty.
- 100% Cash Refinancing, including financing fee: Use the equity in your home and take money out to pay down debt, make home repairs, remodel or otherwise spend.
Created to help more veterans buy their first homes at an affordable price, the VA loan carries a lot of value for money. From their flexible and generous loan requirements to their low interest rates and closing costs, VA loans are one of the most popular options among first-time homebuyers with a military history. Perhaps the biggest advantages to a VA loan are 100% financing (no down payment required) and no mortgage insurance requirement. These two benefits can save you a lot of money now and hundreds of dollars over the life of the loan.
As a Mortgage Loan Officer in Florida, I can advise you throughout the buying process. If you are thinking of buying a property in Florida, you can call me or write me on WhatsApp or clic here to contact me and I will be ready to provide you with a totally free Financial Advice.