VA eligible home buyers Bradenton can still purchase a home with $0 money down. Everyone knows the main issue Florida first time home owners face is lack of down payment. Most conventional loans these days require 10 percent ++ down payment, which is out of reach for even many second time buyers. Even with the disappearance of $0 down mortgage financing years ago, a few government programs remain the offer 100 percent financing in 2015. First, for past and present military there is the VA home loan. Backed by the VA (Veterans Administration), The VA mortgage still offers 100 percent financing with NO monthly mortgage insurance. This is without a doubt the best home financing option available today in Manatee County. In addition to 100% financing, the VA loan offers the lowest 30 year fixed interest rates around. This program is backed by the Federal Government and administered by approved VA lenders/banks in Manatee County. Florida Vets that have VA benefits should certainly look into this mortgage option first. Let’s look at some of the advantages of VA home loans:
100% financing – no down payment.
No “PMI” or Monthly Mortgage Insurance – All other program like FHA, USDA, and certain conventional loans require monthly PMI or mortgage insurance to be paid, not the VA program! Only a one-time VA funding fee that is rolled into the new loan. In some cases, this can save buyers hundreds of dollars each month.
Seller Paid Closing Costs – sellers concession for closing costs can be paid by the home sellers. This reduces the out of pocket money needed from home buyers.
Low 30 Yr Fixed Rates – VA Home Loans offer a low fixed rate. This is a rate that starts low, and stays low. That gives you the peace of mind that your payment will not increase in the future and that your home will remain affordable for years to come.
More flexible credit requirements – Because a VA Home Loan is insured by the government, we can offer VA Home Loans to applicants that may not qualify for other types of home financing, including FHA loans. The current min credit score FICO is 620.
Easy Refinance Options – VA makes refinancing easy through the VA IRRRL streamline refinance.
VA home buyers can learn more about the VA pre approval requirements here.
USDA Rural Housing
The second 100% home loan is the USDA Rural Housing program (also know as RD or 502 Guaranteed loans) this program is reserved only for properties located in approved USDA rural locations. This is the only 100% financing option available for non-military home buyers in FL. Many parts Manatee / Hillsborough County are still eligible for this program – Palmetto, Ruskin, Memphis and Parrish to name a few. You can see the approved USDA housing map here. The program can be used for ANY move in condition single family home, condo or townhome as long as it’s located in an approved USDA approved location. Manufactured homes, homes that require extensive rehab, land loans, “build on your own land” is not permitted.
Many parts of Hillsborough and Manatee County DO qualify for the USDA loan program which could save home owners a considerable amount of money when compared to other home financing options FHA or conventional mortgages. Let’s take a look at some of the USDA 502 Guaranteed loan benefits below:
$0 Down Payment Required – Unlike conventional and even FHA loans, Rural Development home loans do not require any down payment. This is especially beneficial for first time homebuyers around Bradenton. Saving up a down payment can be very difficult for younger buyers just starting out. Utilizing a USDA loan means that is no longer an obstacle to home ownership.
Low PMI – The monthly mortgage insurance (PMI) on a USDA loan is much lower than it is for an FHA or conventional loan. This can greatly reduce your monthly mortgage payment, allowing you to qualify for more.
Seller Can Pay Closing Costs – Sellers concession for closing costs allows the seller to pay for some (or all) of your closing costs out of their proceeds from the sale of the home. Couple that with 100% financing that is available, and you can be in a home without any of your own money, meaning you can keep your money in savings to cover any moving expenses.
Simple credit requirements – Because a USDA Home Loan is insured by the government, we can offer VA Home Loans to applicants that may not qualify for other types of home financing, including FHA loans. Like VA, the current USDA Rural Housing min credit score required is 620.
No Loan Amount Caps – USDA loans do not have a loan amount limit like FHA loans. The amount applicants qualify for is depending on their qualifying debt to income ratios.
Build In Closing Costs – On certain distressed sales (bank owned, investor owned homes) the home seller may not be able to pay concession for closing costs. A USDA loan allows the financing of the closing costs even if the seller will not agree to a sellers concession assuming the appraised value is high enough. All of the closing costs can be financed, up to 100% of the appraised value of the home. This is extremely beneficial when a seller’s concession is not an option.
Low Secure Fixed Rates – Just like the VA program, the Rural Housing USDA loan offers some of the lowest fixed rates available today.
New buyers interested in learning more about the USDA program can click here. Questions? We are available to assist you 7 days a week. For quick service please submit the “Request Contact” form at the top right side of your screen. Mobile users can find the short Request Contact Form here. Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.