Buying a home is a huge milestone in anyone’s life, whether it’s your first home or not. Part of the home buying process is determining which mortgage loan works best for your situation. If you’re a veteran in Florida, you’re in a unique position where you’re eligible for a VA loan.
Table of Contents
The Department of Veterans Affairs supports VA loans, and home loans are offered to veterans, active-duty service members, and their surviving spouses.
They come with favorable terms and assistance for disabled veterans that can alleviate the financial burden of buying a house. If you’ve been thinking about taking out a VA home loan, understanding the benefits can help you decide.
Eligibility Requirements for VA Loans – Disabled Veterans Florida
Like other home loans, VA loans have specific eligibility requirements, especially for disabled veterans. These requirements cover service history, disability ratings, income requirements, and more.
Service Requirements for VA Loans
There are specific service requirements that must be met to be eligible for a VA loan. These vary based on several factors. The main service requirement to be eligible for VA loans is that a period of active duty has to have been served. The service minimums are based on peacetime and wartime:
- At least 90 consecutive days during wartime
- At least 181 consecutive days during peacetime
Most people who enter the military will easily meet these requirements and qualify for the VA home loan program. However, the service requirement is much longer for those who enter the Reserves or National Guard. These individuals will need to serve for at least six years to qualify.
If someone is discharged due to a service connected disability before the service period is met, they might still be able to qualify for a VA loan.
Disability Rating and Eligibility
Disabled veterans also have to meet certain criteria that determine the extent of their disability. The VA has a disability rating system that examines eligibility for VA loans. For the most part, any service connected disability will allow the veteran to qualify for this loan, but depending on the disability rating, they might even qualify for additional assistance.
There are several disabilities that would make a veteran eligible for VA loans. They can be both physical and mental. Some of them include:
- PTSD
- Amputations
- Physical injuries that require retirement
Having the VA assess and rate the disability is a crucial step to ensuring you qualify for the VA loan and any other benefits.
Other Eligibility Factors for VA Home Loan
The disability rating and service requirement are significant components when qualifying for VA loans, but they’re not the only factors. Like other loans, there are certain credit history and score requirements, income requirements, and obtaining the certificate of eligibility (COE).
The VA doesn’t specify a minimum credit score to be eligible for a VA home loan, but most mortgage lenders look for borrowers with a minimum score of 620. So, it’s fair to assume that they want borrowers with that credit score or higher. There are situations where they might be okay with lower credit scores based on the veteran’s financial situation and history.
Another requirement is to obtain a Certificate of Eligibility (COE) from the VA. The COE is an official document that verifies the veteran’s eligibility for the VA home loan program. You can obtain the COE by visiting the VA’s eBenefits portal, through a lender, or by mail.
VA Loan Benefits for Disabled Veterans in Florida
The Department of Veterans Affairs offers attractive benefits to disabled veterans who are buying a home in Florida. Each benefit helps ease the burden of buying a home.
No Down Payment Required
One of the biggest benefits of a VA mortgage is that it doesn’t require a down payment. A down payment is one of the biggest hurdles that homebuyers deal with because they have to have a large sum of money saved up. This isn’t possible for everyone, and the VA helps make sure this hurdle doesn’t prevent the veteran from purchasing a home.
No Private Mortgage Insurance (PMI)
Most people need to add private mortgage insurance (PMI) to their list of costs when buying a home. However, with the VA home loan program, veterans don’t need to buy PMI to secure the VA loan. Not having to pay for the insurance alleviates the financial burden of this extra monthly payment.
Competitive Interest Rates
Interest rates are important when considering which home loan to take out. VA home loans offer eligible veterans, active-duty military members, and surviving spouses competitive interest rates. The VA backs the borrower, allowing them to take advantage of lower interest rates and lower monthly payments.
Limitation on Closing Costs
The VA also helps limit the amount a disabled veteran or other veteran will pay in closing costs. Florida veterans don’t need to worry about private lenders charging excessive fees, and these fees can even be waived entirely for disabled veterans.
Assumable Mortgages
Another unique feature of VA home loans is that they’re assumable. An assumable mortgage means that the loan can be transferred to a different buyer who is also eligible for these benefits.
Forbearance and Loan Modification Options
Disabled veterans who take out a VA home loan can also benefit from forbearance and loan modifications. If they face financial hardships, they can temporarily pause their monthly payments or modify the loan terms to make them more manageable.
Specific Programs for Disabled Veterans in Florida
Besides the standard VA benefits offered to disabled veterans, the VA offers several programs for which they might be eligible. They’re all designed to help Florida veterans live more comfortably while living with physical disabilities or financial hardships.
Specially Adapted Housing (SAH) Grants
Some service members are entitled to specially adapted housing (SAH) grants. This program helps veterans with service-connected disabilities make changes in their homes to meet their needs.
This could consist of making the home wheelchair accessible with ramps and modifications inside the home. Some might need special equipment to remain as independent as possible. The grant amount will vary based on the disability rating and available funding, but it’s beneficial for assisting disabled veterans and showing appreciation for their military service.
Temporary Residence Adaptation (TRA) Grants
Most grants are designed for the disabled veteran’s primary residence, but temporary residence adaptation (TRA) grants are valuable when the veteran lives at a family member’s home or needs assistance before moving into their new primary residence.
The grant helps make modifications to another home, allowing it to be as accessible and comfortable for the veteran as possible. It has similar requirements as SAH grants, but the focus is on temporary adjustments.
Florida Hometown Heroes Program
Florida also has designated programs to help veterans and other service members when buying a home. The Florida Hometown Heroes Program provides down payment assistance, including closing costs, to veterans and other eligible occupations.
This program also helps police officers, firefighters, teachers, and other first responders. The main qualification for this program is that you must be a Florida resident.
Florida’s Salute Our Soldiers Program
Another great option for a veteran is Florida’s Salute Our Soldiers Program. This program also helps provide additional down payment assistance to eligible veterans. It’s in place to supplement VA home loans.
Like the grants and other programs, this program has very specific eligibility requirements. Some of the requirements include being a Florida resident, proof of military service, and income limitations.
Take a Step to Homeownership in Florida
The Department of Veterans Affairs is a beneficial resource to all veterans, active military personnel, and surviving spouses. Many veterans struggle to afford a home, and the VA home loan program can provide just the assistance they need. With no down payment, competitive interest rates, no PMI insurance, and more, veterans can feel at ease purchasing a home.
Working with a lender who understands the intricacies of the VA home loan program is essential to maximizing your benefits. District Lending can help you navigate the program and work with you to ensure you’re taking advantage of all your benefits.
To speak with one of our trusted experts, contact District Lending today.
