A Veterans Administration (VA) home loan has a lot of advantages over other types of home financing. These benefits allow active-duty military personnel, veterans, and their families to save significant amounts of money when purchasing a home. How does this unique and powerful loan program work? Let’s look at some questions and answers from your Florida VA Mortgage experts at Embrace Home Loans.

Who is eligible for a VA loan?

VA loans are available for veterans, active duty military personnel, reservists or National Guard members, and some surviving spouses.

How much can I borrow with a VA loan?

In most parts of the US, qualified veterans can buy a home worth up to $417,000 with no money down. In some high-cost areas, this limit may be higher.

Is a VA loan complicated?

No! In fact, the ease of a VA loan is one of the biggest reasons borrowers choose them. You’ll need to request a Certificate of Eligibility, based on your military service, to apply for a VA loan. You can then apply for a VA home loan at any mortgage company that is VA approved. The VA home loan process has been streamlined over the years so that now it can be easier than some conventional mortgage programs.

What makes a VA loan better than other loans?

Because VA loans are backed by the government, they offer a lot of advantages, including:

  • 100% financing (no money down) for purchasing or refinancing a home (up to certain limits).
  • Closing costs are limited by the VA, and the program allows the property seller to pay most or all of those expenses.
  • Lower interest rates and monthly payments.
  • Less stringent qualification requirements and more flexibility.
  • No pre-payment penalty.
  • A streamlined refinancing, or interest rate reduction refinance loan (IRRRL) option, for homeowners with VA loans who want to refinance to a lower mortgage rate.

Do VA loans require private mortgage insurance?

Private mortgage insurance (PMI) is generally required for Federal Housing Authority (FHA) or conventional mortgages to protect the lender if the borrower doesn’t pay back the mortgage. However, because VA loans are guaranteed by the government, PMI isn’t required.

I already had a VA home loan. Can I get another?

Under certain circumstances, yes, you can have your entitlement restored to use again on another home. These include:

  • The property has been sold, you no longer own it, and you’ve paid off your previous VA loan in full.
  • A qualified veteran has agreed to assume the outstanding balance on the loan and substitute his or her entitlement for yours.
  • A one-time-only entitlement restoration for eligible veterans who have paid their prior VA loans in full, but haven’t disposed of the property securing the loan.
  • Also, many Veterans are choosing the option of renting their current VA home, and with enough remaining Entitlement, they can be eligible for a new VA home loan for their new primary home purchase.

I have a conventional mortgage. Can I get a VA loan?

Yes, you can still qualify for a VA loan if your current mortgage is not a VA loan.

Find out more

The loan experts at Embrace Home Loans are ready to help you understand your benefits as a veteran and work with you to get you a Florida VA mortgage. Call us today at 800-620-6292 for more information about VA loans and how they can benefit you.

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