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VA Loans

Kali Evans Mortgage Lender Florida KeysVA-Guaranteed Loans

VA loans are guaranteed by the federal government through the Veterans Benefits Administration, which is part to the Department of Veterans Affairs. The VA’s main purpose in guaranteeing loans is to help meet the housing needs of eligible veterans who have served or are currently serving on active duty in the U.S. Armed Forces, which includes the Army, Navy, Air Force, Marine Corps, Coast Guard, Reserves, or National Guard. VA loans are available to eligible veterans for the purchase of owner-occupied single-family homes and for multifamily dwellings up to four units if the veteran intends to occupy of of the units as the primary residence.

Eligibility

Although a lender will examine the borrower’s credit history, amount of income, and other factors before approving the loan, the primary requirement to be approved for a VA loan is the borrower’s military eligibility, which is based on a person’s length of continuous active service and other factors, such as when he or she enlisted and whether he or she served during war time. spouses of veterans who died in active duty from service-related causes or who were MIA or POW may also be eligible for a VA loan.

Documentation

Lenders may not process or close a VA loan without verifying the eligibility of the borrower with a Certificate of Eligibility (COE) issued by the VA. You can apply for a COE on the VA website, or through mail by using VA Form 26-1880, Request for a Certificate of Eligibility.

Maximum Loan Limit

The single-family home loan maximum for most counties is $417,000. Although, keeping in account the rise in costs of homes, Monroe county Florida’s maximum loan limit is $529,000.

Benefits of VA Loan

  • No down payment required (unless required by the lender or the purchase price is more than the reasonable value of the property.
  • Ability to finance the VA funding fee(plus reduced funding fees with a down payment of at least 5 percent and exemption for veterans receiving VA compensation)
  • Negotiable and competitive interest rate.
  • VA rules limit the amount you can be charged for closing costs.
  • Closing costs are comparable with other financing types (and may be lower)
  • Closing costs may be paid by the seller.
  • No private mortgage insurance premiums are required.
  • An assumable mortgage.
  • Right to repay your mortgage without penalty
  • For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
  • VA assistance to veteran borrowers in default due to temporary financial difficulty.