Over the decades, South Florida has consistently been a hot real estate market. Unfortunately, we’ve seen many instances where potential homeowners have been left out in the cold due to affordability and the inability to get mortgage lending. This is when VA mortgage benefits continue to be the most helpful mortgage financing available for those who are veterans.
Assisting Veterans and Their Families
VA loan benefits are often the only available option allowing some servicemen and women the ability to become homeowners in today’s market. The VA loan program is part of the VA benefits package that is designed to assist veterans and their families with some of the costs in purchasing and affording a home. The VA doesn’t administer the loans but sets the guidelines and guarantees them.
VA Loans Offer Incredible Benefits for Those Who Qualify
The VA loan program stands apart as a great resource for qualifying borrowers due to its low rates, lenient underwriting guidelines and other important benefits.
- No Down Payment Required — Most conventional and FHA mortgage programs require a minimum downpayment in order to purchase a home. VA mortgages are an exception to that rule. The VA will allow a borrower to finance 100 percent of the price of the home, thereby making it extremely desirable for a homebuyer with little cash for a downpayment.
- No Mortgage Insurance Is Required — With other lenders, mortgage insurance covers that lender in the case of foreclosure by the borrower in the case where the mortgage is in excess of 80 percent LTV. The borrower will need to pay monthly premiums for that mortgage insurance over and above their principal and interest payments. With VA financing, there are no mortgage insurance premiums as the VA is guaranteeing the loan.
- Government Guarantee — Because the VA guarantees a portion of these loans, it gives lenders an incentive to offer loan terms that are very favorable to qualifying borrowers.
- Easier Qualification — Like any other type of mortgage financing, a VA lender will require specific documentation in order to approve a borrower for financing. But VA guidelines are much more lenient than those of conventional lenders and even FHA mortgages due to the VA guarantee.
- Ability to Shop Terms — Because VA loans are not funded directly by the VA, their lenders are independent banks and institutions what set their own rates and fees. Consequently, these can vary greatly and offer both fixed and adjustable rates. You may also refinance your VA loan with another VA loan. It’s important to get professional advice from a Florida mortgage professional to help you make an educated choice that works best for your financial needs.
- Lower Closing Costs — The VA limits the amount of closing costs that are charged to a borrower.
- Assumability — Most VA loans can transfer to someone who buys your home if they also qualify for VA funding. This can benefit a borrower greatly if rates rise in the future.
- No Prepayment Penalties — There are no prepayment penalties or “exit fees” if you decide to pay off your mortgage or sell your home.
If you have questions about VA mortgage benefits and eligibility, your best option is to discuss them with a licensed mortgage broker in Florida. At Florida State Mortgage Group, we serve mortgage borrowers in Fort Lauderdale and throughout Florida with sound and professional mortgage advice. Contact us today at (954) 359-3000 to discuss your mortgage needs.