Buying my Home with a VA Home Loan
Thank you for serving our country, now enjoy your well-deserved benefits extended to you from the US Government as a veteran, in this article will discuss your Veteran Benefits when it comes to buying a Home, to see VA Homes and other Homes go to the bottom of this article.
What is a VA Home LoanA VA loan is a type of mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA). It is designed to help veterans, active-duty service members, and eligible surviving spouses buy, build, repair, retain, or adapt a home for personal occupancy.
VA Appraisal: VA loans require the property to meet certain minimum property requirements (MPRs) set by the VA. These requirements are in place to ensure that the property is safe, structurally sound, and sanitary. If the property does not meet these requirements, the seller may need to make repairs or adjustments before the loan can proceed. In a VA loan transaction, the buyer typically pays for the VA appraisal. This is a standard part of the VA loan process. The appraisal is used to determine the fair market value of the property being purchased, which ensures that the loan amount does not exceed the value of the property.
Funding Fee: VA loans often come with a funding fee, which is a one-time fee paid by the buyer to the VA. This fee can be rolled into the loan amount, but it's something sellers should be aware of when negotiating the terms of the sale.
For regular military personnel (first-time use), the funding fee for a zero-down VA loan was around 2.3% of the loan amount.
For subsequent use of VA loans, the funding fee was around 3.6% for zero-down loans.
These percentages can change, so it's essential to check the most current rates, consult with a lender who can provide up-to-date information. Additionally, certain individuals, such as veterans receiving compensation for service-connected disabilities, may be exempt from paying the funding fee.
Closing Costs: In some cases, VA loans may limit the amount of closing costs that the buyer is allowed to pay. This means that sellers may need to cover more of the closing costs themselves or negotiate with the buyer to cover these expenses.
Timelines: VA loans can sometimes take longer to close compared to conventional loans because of additional requirements and inspections. Sellers should be prepared for potentially longer closing timelines when dealing with buyers using VA loans.
While VA loans offer many benefits to eligible buyers, sellers should be aware of the specific requirements and potential implications when considering offers from buyers using VA financing.
Benefits of a VA Home Loan to the Veteran Buyer
No Down Payment (in most cases) One of the most significant benefits of VA loans is that eligible buyers can purchase a home with no down payment in many cases. This feature can make homeownership more accessible to veterans, active-duty service members, and eligible surviving spouses who may not have significant savings for a down payment.
Competitive Interest Rates VA loans often come with competitive interest rates compared to conventional loans. This can result in lower monthly mortgage payments and overall savings over the life of the loan.
No Private Mortgage Insurance (PMI) Unlike many conventional loans, VA loans typically do not require private mortgage insurance (PMI). PMI is an additional monthly expense that borrowers with less than a 20% down payment usually must pay to protect the lender in case of default.
Flexible Credit Requirements While VA loans still have credit requirements, they may be more flexible compared to conventional loans. Veterans and service members with less-than-perfect credit histories may still qualify for VA loans.
Limited Closing Costs VA loans limit the amount of closing costs that veterans can be charged, which can help reduce the upfront expenses associated with buying a home.
Assistance in Financial Hardship The VA offers assistance to borrowers who encounter financial difficulties and struggle to make their mortgage payments. They provide counseling services and may intervene with the loan servicer on behalf of the borrower to explore options to avoid foreclosure.
Streamlined Refinancing Options VA loans offer streamlined refinancing options, such as the Interest Rate Reduction Refinance Loan (IRRRL), which can help borrowers refinance their existing VA loan to obtain a lower interest rate or switch from an adjustable-rate mortgage to a fixed-rate mortgage with minimal paperwork and underwriting requirements.
This is a great benefit you can buy now that interest rates are high and when prices go up and interests rates come down you can refinance! Ask your Mortgage Broker about how easy it will be to refinance your VA Home Loan.
How my Investment Grows when I buy a VA Home:
Let's figure on a $700K Home purchase with a 100% VA Home Loan where you pay only the funding fee and other miscellaneous closing costs, the leverage is huge because of the inflation gains, not only does it go up on the small amount of your investment but on the total in this case $700,000, right now the appreciation for Broward homes in this price range is running around 10% that's $70,000 per year!
Florida VA Home Maximum Loan Limit
VA loans provide eligible buyers with significant advantages and can be a valuable tool for achieving homeownership and financial stability.
You can borrow as much as a lender is willing to lend without needing a down payment. However, veterans without their full VA loan entitlement are still bound to Florida's VA loan limits. As of January 1, 2024, VA loan limits for all counties in Florida are $766,550.
This amount is subject to change, please check with your loan provider to find out the maximum Home VA Loan that you qualify for.
How Long does it take to Process my VA Home Loan
With most lenders, you can expect your VA loan to close anywhere between 40 and 50 days.
If you see that you are going to need more time to close make sure to have your Buyer’s Agent put in an Addendum for the seller to sign agreeing to the new closing date and Finance Contingency extension if needed, since this can impact you EMD or buyer deposits.
How Much will my Fort Lauderdale Home be worth in 5 years?
In the period from 2018 to 2023 Residential Real Estate Prices increased by a whopping 20% per year or close to 100% by 2023.
Is as though the world has taken notice and every one wants to move to Fort Lauderdale and nearby cities!
Going with a very conservative appreciation rate for Homes of 3.5% per year you can expect a $500K Home to appreciate to:
5 years $594K
10 years $706K
20 years $1 Million
Due to low interest rates and other issues home values in Broward County FL increased by at least 20% in 2021, so as you can see this is a conservative estimate of future value, we might get another interest rate decrease soon, we’ll have to wait to see how the home market will react, it is impossible to predict the future, we can only look back.
VA Mortgage Broker / Lender that works with Veterans
I can provide you with the contact information to an excellent VA Mortgage Broker / Lender that I have worked with in many previous transactions he will answer all your questions and provide you with a Prequalification Letter in a matter of hours, if you don't have one yet, if you do please provide me with the Prequalification letter, (Email PDF) by the time we start looking at homes in person, sellers don't want to take their homes off the market without verifying that you can afford it.
Certificate of Eligibility (COE): A COE is a certificate that shows that you qualify for a VA loan. You can apply online through the VA's eBenefits portal, or your lender may be able to assist you in obtaining it.
Mortgage Brokers recommend that you don't buy any big-ticket items before getting your home because it could affect your FICO Score and ultimately your ability to qualify for the Home Mortgage
How to Get Ready to Buy:
If you’re interested in buying a home in Broward County I want to hear from you, I’ll insert some special wording in the Offer to Purchase to protect you. Friend, I look forward to working for you.
Text me at 954-648-6095 with your name, Price Range, and your desired area, I'll send you your own Site with properties that meet your Search Criteria and that are available now, you can unsubscribe any time.
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Antonio Ortega LLC
www.AntonioOrtegaLLC.com For Residential PropertiesVisit our Secure Website often: www.SouthBrowardHomesbyTony.comAntonio Ortega LLC Licensed Real Estate Professional with Global Luxury Realty
P.S. Be it today, tomorrow or six months from now, I'm prepared to offer you dedicated extraordinary service.
