The VA home loan program is a mortgage backed guaranteed by the U.S. Department of Veterans Affairs. This home mortgage is designed to provide special benefits to Florida vets as well as the surviving spouses of veterans. VA home loans provide a number of homeownership opportunities with no down payment needed in Tampa, St. Petersburg, Clearwater and surrounding areas. The government backed VA loan is available to active duty military personal, honorably discharged veterans and their widows.
This is one of the last remaining mortgage programs that still allow home buyers to purchase a Florida home with NO MONEY DOWN. Certain guidelines must be met by FL lenders and banks wanting to offer VA loans. Below we will discuss some important things eligible Florida home buyers will want to know about getting pre approved for a VA loan. Questions? We are available to assist you 7 days a week. For quick service please submit the “Request Contact” form on this page.
Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.
VA Mortgage Pre Qualified and Pre Approved:
Getting a VA mortgage qualification letter prior to looking for a new home with an agent is an important step in the home buying process. The pre approval letter will provide the loan applicant with an idea of their qualifying amount, monthly expenses and down payment requirements. Additionally, the pre-approval letter gives the seller and realtors involved a better sense of security and confidence that the purchase contract will be able to close… and on time.
There is a big difference between a Pre-Approval Letter and a Mortgage Approval Conditions List. The Pre-Approval Letter is generally issued by a loan officer after credit has been pulled on the vet applying, income and assets docs have been reviewed. The Pre-Approval Letter is basically a loan officer’s written communication that the borrower fits within a particular loan program’s guidelines. The VA pre approval letters will always be contingent on an acceptable VA home appraisal. The Mortgage Approval Conditions List is a bit more detailed, especially since it is usually issued by the underwriter after an entire loan package has been reviewed.
Questions about employment history, tax returns, assets, bank statement deposits, and other qualifying related details should be addressed before a VA loan specialist issues a Pre-Approval Letter, the final loan conditions list is where all of those conditions will show up. In addition to borrower related conditions, there are appraisal clarifications, purchase contract updates that may show up on this list. This will also list prior to doc and funding conditions so that all parties involved can have an idea of the timeline of when things are due. The VA underwriting process will generally take 10 days for so to complete. Exact times can vary based on the lender, and the borrower(s)
VA Loan Approval Amount?
Getting a VA loan pre approval letter for a new home purchase is mainly to let everyone involved in the transaction know what type of mortgage financing the buyer is approved for. Sellers will want to know if the loan approval is for a VA, USDA, FHA or maybe a Conventional loan. The Pre-Approval Letter is based on loan program guidelines pertaining to a applicants debt to income ( DTI) Loan to Value ( LTV) Credit, Property Type and Residence Status.
A complete VA Pre-Approval Letter should let the borrower know the exact terms of the loan amount, down payment requirements and monthly payment, including principal, interest, taxes, insurance and any additional mortgage insurance premiums.
Keep in mind, one of the most important items to remember when looking into financing is that there is sometimes a difference in the amount a borrower can qualify for vs what’s in their budget for a comfortable and responsible monthly payment.
Here are some items borrowers will want to see on their pre approval letter:
- Approved Loan Amount – Base loan amount and possibly gross loan amount (FHA, VA, USDA)
- Status Date and Expiration Date – Most Pre-Approval Letters are good 90 days from when your credit report was run. After 90 days borrowers should touch base with their lender again to update any changes.
- Type Of Financing – FHA, VA, USDA, Conventional, Jumbo
- Mortgage Term –30, 20 or 15 year fixed, ARM (Adjustable Rate Mortgage); if ARM, 3, 5, 7 or 10 year initial fixed period.
- Type Of Occupancy – Owner Occupied or Secondary Residence, Investment home purchases ( conventional only)
- Lender Contact Info – Bank or Lender’s Name and Address, Phone, etc.
- Loan Conditions – Document and Funding requirements prior to Approval ( Generally fully ratified purchase contract and acceptable appraisal)
VA Loan Benefits For South Florida Home Buyers:
- 100% Financing , No Down Payment Required. Most conventional loans require that borrowers pay 5% to %20% of the sales price in the form of a down payment. For example, if the sales price is $200,000 the borrower would need to present a $10,000 to $40,000 cash down payment up front. The VA loan program requires zero down payment, opening doors to financing that may have been difficult to obtain otherwise. This is especially great in Florida where 100% mortgage financing is hard to find in 2015. In fact VA is the only 100% loan available for Tampa, St. Petersburg, Pinellas, Clearwater homebuyers.
- No Required PMI, or Private Mortgage Insurance. This fee is often required when borrowers of conventional loans are unable to provide at least a 20% down payment. FHA, USDA loans also require a monthly fee. PMI is designed to protect lenders should a borrower default on a loan. Because VA Loans are backed by the US Department of Veterans Affairs, lenders assume less risk, and are able to omit the requirement for PMI. This advantage can end up saving qualified veterans a substantial amount of money.
- Low 30 yr Fixed Interest Rates. Because VA loans carry the VA guaranty, lenders assume less risk. This enables lenders to offer very competitive interest rates that are often lower than those of many conventional loans. This is especially true for home buyers with credit scores over 720.
- Easy refinance options – this is great for borrowers that may want to refinance down the road. The VA cash out and IRRRL loan.
VA Loan Basics – St. Petersburg, Tampa