VA loans are one of the few remaining true 100% programs still available in the market today. This is an incredible assets since the financial meltdown of 2007-2008 has left this area of the market with a vacuous void.
Veteran loans do not require any mortgage insurance. Instead they have a VA funding fee which as mentioned earlier is typically financed into the loan for you. The fact that there is no mortgage insurance coverage will save you hundreds of dollars monthly over conventional or FHA financing which would require that the borrower carry mortgage insurance on the loan. The more money one can keep in their pockets in these tough times the better it is for everyone!
How do you know if you qualify for a VA Loan? That is a great question. Here is a brief summary for you to consider if you may qualify:
- Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime.
- 2 years requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981
- 6 year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses
- If you are now on regular duty (not active duty for training), you are eligible after having served 181 days unless discharged or separated from a previous qualifying period of active duty
- If you are an unremarried spouse of a veteran who died while in service or from a service connected disability
- If you are a spouse of a service person missing in action or a prisoner of war
- A surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible
We highly recommend the VA loan to all those who qualify. 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.
Written by Christopher Burns