If you are a veteran, active-duty service member or eligible surviving spouse, and you want to apply for a home loan in Miami or elsewhere in Florida, you should consider applying for a VA mortgage.
If you meet the service requirements to qualify, a VA loan can help you purchase a home in FL with zero down payment.
VA Loan Tips in Miami, FL
While most people know VA mortgages carry zero down payment requirement, there are probably some things you do not know about this type of loan. Let’s go over a few of them now.
- However long ago you served, you can use a VA loan. Has it been decades since you served in the military? You might assume that such a length of time disqualifies you from claiming your VA benefits to buy a home. But actually, VA benefits do not expire over any length of time. You can claim them now or at any point in the future.
- You can get more than one VA mortgage in your lifetime. Did you use a VA mortgage to purchase a home in the past? You might think that you can only use your VA benefits one time, but this is also not factual. You can buy a home today with a VA loan even if you did so before. You could even purchase another one with a VA mortgage in the future after this one. There is no limit to how many times you can take out VA home loans.
- The VA is not your lender. It is a common myth that the Department of Veterans Affairs originates mortgages through the VA loan program and that you are borrowing money directly from the VA to buy a home. But this is not the role of the VA when you take out a VA mortgage. You borrow from an independent lender, and the VA guarantees your mortgage. It is this act of insuring the mortgage which offsets risk factors in your profile as a borrower, making you eligible for more competitive rates and terms.
- Foreclosed on in the past? You can still get a VA mortgage in Miami. You might think that a foreclosure on your record would wipe out your eligibility for a VA loan. But your VA benefits are not impacted by a foreclosure once the waiting period has passed.
- Declared bankruptcy? That won’t stop you from getting a Florida VA loan. Similarly, you can still qualify for a VA mortgage even if you have declared bankruptcy. After the waiting period expires, you can apply successfully.
- There are some fees and restrictions. While VA mortgages have many benefits, there are a few drawbacks and limitations that you should know about. For one thing, there is a specialized fee for VA loans called the “VA Funding Fee.” Nearly everyone has to pay this fee, but if you are a qualifying disabled veteran, the VA Funding Fee may be waived. Another potential snag with a VA mortgage involves co-borrowers. Your co-borrower needs to either be your spouse or a fellow veteran if you want to purchase a home with the VA mortgage and zero down payment. Some lenders will allow you to take out a VA mortgage with somebody else, but you will have to put money down. Finally, be aware that you cannot buy a vacation home or second home using a VA loan. You can only purchase a primary residence with this type of mortgage.
- There is no PMI or prepayment penalties. There are a couple other benefits of VA loans which not all borrowers know about. One of those is that if you pay your loan off early, you will not be charged prepayment penalties like you will with many other types of loans. The other benefit is that you do not need to pay for private mortgage insurance (PMI). Paying this extra monthly expense is a requirement with FHA mortgages. So, if you qualify for both, this might be a factor which decides you in the direction of a VA loan. Both this benefit and the lack of prepayment penalties could save you thousands of dollars.
Apply Now for a VA Loan in Miami
Whether you are looking to purchase a home in Miami or elsewhere in Florida, Lending Bankers Mortgage can answer your questions about VA mortgages and help you apply successfully. To get started now, please call (786) 220-1100 to schedule your VA loan consultation in Florida.