If you are a veteran of a family member of a veteran, you could qualify for special loan rates and terms with a Veterans Affairs loan through Nationwide Home Loans. This particular loan program was designed by the United States government to help service members returning from service have the opportunity to purchase a home. The goal of the program is to provide easier access to affordable home loans.
While Fort Lauderdalah,e VA loans have always provided added benefits for current or former service members and qualifying family members, these benefits now have a bigger impact as lenders are tightening lending limits following the housing market crash in the early 2000s.
VA loans in Fort Lauderdale vs. Traditional home loans
You may wonder why you should consider VA loans in Fort Lauderdale, instead of applying for a tradition mortgage. While the process for getting the loan are a little more detailed, the benefits certainly outweigh the extra time and effort put into obtaining this type of mortgage.
One of the most obvious benefits for veterans is the complete elimination of a down payment. While you can offer a down payment (as this can lower monthly payments), VA loans in Fort Lauderdale are one of the last loan types that allows for no money down on a home purchase. Traditional mortgages typically require up to 20 percent before a loan is secured. Of course, many lenders offer lower downpayments, but interest rates typically make up for the savings.
If you need more financial incentive, VA Loans do not require you to purchase private mortgage insurance. This will help keep your monthly payment low when you repay your mortgage. Traditional loans require a PMI of at least 80 percent of the home’s value, which increases their monthly payment.
An extra benefit for veterans: some of the best VA loan rates in Fort Lauderdale. Because the VA backs your loan, you will get more competitive interest rate offers. This can be particularly important if you have a not-so-great credit score. Traditional loans usually do not have secure backing, which means the lender is risking more, so they charge a higher interest rate. If you want to save money on your new home, purchase VA loan rates in Fort Lauderdale, FL should be among your top considerations.
If you have a bad credit history or a low credit score, you are much more likely to qualify for a VA loan because the bank has less risk. Not only will you get better offers, you may be able to get a loan even if you otherwise would not be able to. Click here to learn more about interest rates we can offer you for your VA loan.
Qualifying for a VA loan in Fort Lauderdale
Veteran Affairs loans are offered to current and former military service members. In order to qualify for this type of home loan you must have served for at least 90 consecutive days during wartime, 181 days of active service during peacetime, serve for 6+ years of service in the Reserves or the National Guard. You may also qualify if you are the spouse of a service member who died in the line of duty or because of an injury obtained during service.
Like all loans, you will need to prove that you qualify for a VA loan. While, you do not have to make a certain amount of money to qualify, you must have a stable job that will cover monthly expenses. VA loans also require that you have some money left over after your monthly expenses in the case of an emergency. Additionally you must be able to provide documentation in the form of a Certificate of Eligibility that says you qualify to receive VA loan benefits.
Your lender may require additional information including a credit check as well as debt and credit requirements. Before you apply for a VA loan, you should check your credit report with at least one of the three credit reporting agencies so you know what the lender will see. Learn more about how your credit score affects your chances of landing a loan.
Considerations for a VA loan in Fort Lauderdale
One of the biggest considerations about getting a VA loan is the process. The VA loan approval process can be much more extensive because of requirements on the part of the VA.
Before you search for a home, you should fill out paperwork with your lender to prequalify. This will help you narrow your home search to homes you can reasonably afford.
Once you have filed your paperwork, the lender will obtain a copy of your Certificate of Eligibility from the VA. You can begin shopping for a home with your chosen realtor. Once you have chosen the home you wish to purchase, the VA has to approve the purchase. The VA wants to ensure the home loan they support is in good condition and not likely to cause major financial stress on the owner. To qualify, the home you purchase must be move-in ready and any problems with the property must be fixed before the loan closes.
If the VA approves the home, your documentation will undergo underwriting, including checking that your documents are in order. A closing date is then scheduled and you can take ownership of your new home.
A VA loan may be slightly more complicated, but you can save thousands of dollars on the purchase of your home with this program designed to help our military veterans. Call us today to learn more about this type of loan.