Coral Springs VA Home Loans Eligibility
Are you a veteran living in Broward County, or would you like to move here? You will be pleased to know that offers Coral Springs VA home loans. We offer a variety of mortgage types, however, if are a veteran you should consider getting a VA home loan as it is the cheapest to get.
Some benefits you stand to enjoy if you qualify for a VA home loan include:
- Zero down payment
- Higher DTI ratios are acceptable
- Zero mortgage insurance
- Low closing costs
- Low interest rates
- Much easier to qualify for
Below are a number of requirements and guidelines you should look at to determine if you qualify for a VA home loan.
Before we begin, please understand that the VA does not finance the mortgage directly instead they guarantee lenders that if the borrower defaults on the loan the lenders will still be reimbursed.
VA Home Loans Eligibility Guidelines
Any member of the military who has been active for the last six months or has been reserve military personnel or National Guard for the last 6 years is eligible for a VA home loan. In addition, if you are a spouse of anyone who meets the above requirements, you are also eligible.
Once your eligibility has been confirmed, you will receive a document known as a VA certificate of eligibility. This certificate will be the proof you will need to show lenders that you, in fact, qualify for a VA certificate.
It is important to note that do not need a VA eligibility certificate to start the VA home loan process. NHL Lending will get this document from the government during the pre-approval period.
Basic VA Requirements
Here are some very basic service requirements you will need to satisfy in order to be eligible:
- Must have served for 90 consecutive days in wartime, or
- Must have served for 180 consecutive days in peacetime, or
- Must have served in the National Guard or the Reserves for more than 6 years
- Please note that borrowers with a dishonorable discharge do not qualify for any type of VA home loan.
VA Income Requirements
- Self-employed income
- W-2 Income/salary
- Part-time Income
- Second job
- Seasonal employment
- Overtime or bonus income
- LES stipulated military income
- Alimony or child support
If any of the above applies to you, then you are eligible for Coral Springs VA Home Loans.
On the other hand, if your income falls in any of the following categories listed below, you do not qualify for a VA home loan.
- Unemployment payments
- Unverified income
- One-time bonuses
- Rental income
- Non-occupying co-borrower income
- One-time payments from your employer
- Lottery Winnings
- VA Home Limits By County
Members of the military who qualify for VA home loans can borrow up to a maximum of $424,100 for their mortgage. However, please note that this is the country average. Veterans in some counties will qualify for less while others will qualify for more. For instance, in Connecticut, a veteran can qualify for a home mortgage worth over $600,000.
To find out if you qualify for Coral Springs VA home loans get in touch with NHL Lending.
Recommended Debt to Income Ratios
VA home loan requirements do not stipulate a maximum DTI (debt to income) ratio. However, lenders are free to set their own maximum DTI. Usually, lenders will set a maximum DTI of 41%. If you would like to know how much DTI would make you eligible for us please feel free to get in touch.
If you would like to qualify for a debt to income ratio of 41%, you need to demonstrate the following:
- High credit score
- Ability to make a down payment
- Large financial reserves
- High net worth
- Increased earning potential
- A small increase in current housing payments
Interest Rates on VA Home Loans
Usually, you will get a lower on a VA home loan compared to the same mortgage on a conventional loan. However, there are a couple of things that you can do to lower your VA home loan interest rate even further.
We encourage borrowers to have a high credit score in order to avoid high-interest rate charges.
Funding Fees for VA Home Loans
Even though as a veteran or active military personnel you are not required to make a down payment when getting a VA home loan, there are some fees you will need to pay.
The VA does not cover closing costs so you can expect to pay anywhere between 1% to 4%. Also, in lieu of down payment, there is a one-time fee that you are required to pay known as a VA funding fee.
The fee is usually 2.15% when the borrower uses the zero down payment option. It is usually rolled into the loan.