Benefits of Getting a VA Loan in Florida
It’s not always easy for military veterans to have enough assets and credit that can allow them access normal financing. In Florida, one can access VA loans of more than $424,100. With the financing, a military veteran family saves a lot and receives favorable terms from lenders. Getting a VA loan in Florida comes with a number of extra benefits, especially when purchasing a home.
Zero down payments
Once a veteran has qualified they won’t need to find a down payment like a typical buyer to purchase some property or home. Since most of them have very few assets, raising thousands of dollars as down payment can be a mountain they’re unable to climb. The fact that there’s no down payment allows veterans to enjoy the American dream without having to save for many years to come up with enough down payment. As such they’re able to own homes now and not decades down the road.
Zero PMI (Private Mortgage Insurance)
Unless the conventional borrower is able to put down enough funds, in most cases 20% of the entire buying price, they’ll need mortgage insurance. The extra monthly fee is pinned to the mortgage payment you do on a monthly basis. With the cost of the insurance varying due to various factors and the loan amount, VA loans on the other hand save veterans lots of money per year in Florida; there’s no private mortgage insurance to pay. For instance, in 2012, veterans were able to save $19 billion in total.
Low credit score required
VA loans in Florida come with relaxed credit requirements. This goes against the grain where lots of homebuyers today have continued to tighten their credit score requirements in the last few years. Compared to a conventional borrower, the VA financing requires a credit score that’s much lower without raising the interest rates.
Great DIT Ratios
In any Florida loan program, revolving monthly debts and monthly income must show a healthy balance. The revolving debts can be student loan and mortgage payments. Once the income and revolving debts on a monthly basis are calculated, the result is a DTI (debt-to-income) ratio that has to be within a specific threshold, in most cases 36% for a conventional loan. Nonetheless, the VA DTI ratio is 41% and can even go up to 55% depending on the ability to meet extra requirements. As such, veterans are offered a better financial flexibility to be able to qualify for the desired loan amount.
VA homes financed by VA loans have had one of the lowest foreclosure rates in many years. The VA loan remains a safe place considering the huge advocate for military veterans in trouble and working hard to make sure they don’t lose or move out of their homes. It’s not just about getting veterans a roof over their heads, but also ensuring that they keep them.
Limit on closing costs
Mortgages attract closing costs and fees but military veterans have an advantage. For the veteran the charged amount on closing costs is limited and the other parties who are a part of the transaction have to cover the fees and costs. As a result, a veteran who has qualified for a home financing is able to afford it. Through the negotiation process, veterans are also at liberty to request the seller to cater for the closing costs in their entirety.