VA Loans Florida
A VA home loan is the best way to get the funding you need for your home. Guaranteed by the Department of Veterans Affairs, this program helps both active duty service members and veterans to afford a beautiful and safe home in the Sunshine State.
There are many benefits to choosing a VA loan in Florida — VA loan rates are much lower than for conventional loans, and there’s no down payment requirement. The VA loan limits are also high, meaning that you can purchase the property of your dreams anywhere in the state. Whether you’re an active duty service member, a surviving spouse, or a veteran discharged due to service-related injuries, we’re ready and willing to help you get a VA loan today.
Florida VA Home Loans
VA loans work to reduce the upfront costs of purchasing a home, making them especially helpful in Florida, where the average purchase price of a home is around $389,325, and property taxes average around 0.98% of your property value every year.
Last year, the federal government provided $15 billion in funding for over 40,000 Florida service members, who each took an average of $376,903 in home loans. The majority of these loans were in Oskaloosa County, where an amazing 21.7% of residents are veterans.
When you work with District Lending to claim your VA home loan benefit, you can become one of these lucky homeowners benefiting from their service through a Florida VA home loan. We can also help you access other Florida VA benefits, which can help you with down payment assistance in order to reduce your loan burden.
What You Need to Know About Florida VA Loans
A veteran who wants to utilize the VA loan program needs to meet a variety of parameters. Most lenders will have some requirements of their own to protect their bottom line.
VA mortgage programs are agreements between the government and a lender that if the borrower defaults, the government will reimburse the mortgage lender 25% of the total loan amount. This makes lenders willing to provide Florida veterans with a great interest rate and no down payment requirement.
Funding Fees
The VA funding fee is used to reduce the cost of VA loan benefits on the taxpayer, and it is paid directly to the government. It’s a one-time fee that will be rolled into your closing costs. The funding fee will range from 1.5% to 3.3%, depending on whether you’ve taken out a loan before and if you provided a down payment.
Loan Eligibility
In order to get these benefits, you need to have a VA loan entitlement, documented with a Certificate of Eligibility (COE) from the Department of Veterans Affairs. The COE is issued based on your military service. You’ll give this to your loan officer to begin the process of receiving a home loan.
Loan Insurance
With a Florida VA mortgage, you don’t have to get private mortgage insurance because the government guarantees to partially reimburse the lender. The state of Florida also does not require homeowners insurance, but your lender may require VA borrowers to show proof of insurance before they will work with you.
Loan Interest Rates
One of the best benefits of this loan type is that you can get a much lower interest rate than you would with any other mortgage. The average rate for a conventional, 30-year fixed-rate loan is approximately 7.5% in Florida, but VA loan rates are approximately 6.71%. This will vastly reduce your monthly payment and help you build equity faster.
How to Know if You Qualify for a VA Loan in Florida
There are a variety of VA home loan requirements — some are related to your service, while others will be determined by the lender with which you work. If you have any questions about the VA loan process, you can always get in touch with us for more details.
Duty Status
Your eligibility for a loan depends on your service status and length of service, which includes:
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Service members – 90 continuous days of active duty
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Veterans after 1990 – 90 days of continuous active duty or 180 days in peacetime
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National Guard members – Six years of enrollment
If you were discharged for service-related injuries, your service can be less than 90 days. Florida residents who were permanently disabled by their service can receive a full exemption for property taxes, while those who are more than 10% disabled get an exemption of $5,000 on any property. The Homestead Exemption also applies to veterans over 65 or surviving spouses, eliminating all property taxes.
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VA Entitlement
Those who have never claimed a VA loan benefit have no limit to their borrowing.
If you have remaining entitlement left over from a previous loan, then your new limit will be the county loan limit minus your previous expenditures. The standard VA loan limit for a single-family home in all Florida counties is $766,550.
Discharge Status
Only those who were honorably discharged are able to receive VA loans, though this can be for many reasons, such as service injuries or early out. If you had a dishonorable, less-than-honorable, or bad conduct discharge, you can apply for a discharge upgrade from the VA. This may be a lengthy process, and you may wish to coordinate with the St. Petersburg Regional Office for assistance.
Decent Credit Score
Now we move to the economic factors. The credit score qualifications for a VA mortgage are less stringent than for other mortgage programs, meaning that those with a less-than-perfect credit score can still access funding. Most VA loans require a 580 credit score, but some private lenders may have different credit score requirements.
Low Debt-to-Income Ratio
While the VA doesn’t have any minimum income requirements, lenders will want to see that you have a reasonable debt-to-income ratio, typically around 41%. This means that only 41% of your total income is going to pay for other debts, such as student loans, car payments, and credit cards.
Waiting Period
Many military members choose to refinance loans after they’ve purchased their property. They may convert it into a non-VA loan, tap into their home’s equity with a cash-out refinance loan, or simply reduce their monthly mortgage payment with a new rate. Your VA home loan needs to season for at least 210 days from close before you can seek a refinance loan. You can get a whole new loan after between three and four years.
District Lending is Your Florida VA Loan Partner
You’ve worked hard to serve our country; now let VA loans work for you. District Lending is proud to have helped countless service members and their families afford gorgeous Florida homes using their VA benefits. We’ll guide you through each step, such as getting your COE and identifying loan limits in your chosen area.
No matter where you served or which branch you belonged to, District Lending is here to help. Contact a helpful loan officer today to learn more about how we can help you find your perfect slice of paradise in the Sunshine State.
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