- The Servicemen’s Readjustment Act was created in 1944 to provide veterans and their surviving spouses with a number of benefits. One benefit was the VA loan program. A VA loan is a great home financing option that allows veterans and military to purchase homes with 100% financing, no mortgage insurance, and limited closing costs. 5 Star Financial Group offers great rates on VA loans throughout Tampa, Riverview, Valrico, Wimauma, and the surrounding Florida areas.
Eligibility requirements will need to be met in order to apply for a VA loan. Fortunately, most veterans, military, and spouses of deceased military members will meet these requirements. If minimum active duty service requirements have been met, veterans can apply without delay. Active duty servicemembers will need to complete a minimum of 6 months of service before they become eligible. National Guard and reservists will need to wait 6 years before they can take advantage of the program. If they are called to active duty at any point, they will only need to wait 181 days.
A Certificate of Eligibility (COE) is also required for anyone wanting to apply. It is important to note that the COE only proves to your lender that you have met the minimum service requirements. A COE is not a guarantee you will be approved for a loan. One of the most convenient ways to get your COE is through the VA’s eBenefits Portal. We can help you with the process when you are ready to apply as well.
VA Loan Benefits:
- 100% financing (appraised value cannot exceed sale price)
- 500 minimum credit score only
- VA funding fees can be financed with the loan (up to 3.3%)
- No private mortgage insurance (PMI)
- No pre-payment penalty
- VA regulation limits closing costs
- Sellers can pay all closing costs
- Up to $484,350 loan amount (certain counties may be higher)
Every loan is subject to a VA funding fee of 0 to 3.3% of the loan amount that is paid to the VA. Borrowers can choose to finance this fee if they would like.
Refinancing options are available to current VA loan holders as well. VA cash-out refinance loans are available for homeowners who need extra cash for home improvements, debt consolidation, and other various expenses. The Interest Rate Reduction Refinance Loan (IRRRL) is available to veterans looking to lower their interest rate. This is commonly referred to as the VA’s streamline refinance loan. A veteran can borrow up to 100% of the appraised value of the home when refinancing.
5 Star Financial Group is proud to help the many veterans throughout Tampa, Riverview, Valrico, and Wimauma with all of their VA loan needs. Whether you are looking to purchase your very first home or are looking to take advantage of the VA loan program to refinance, we can help you find a loan that meets your exact needs. Contact us today for more information on your VA loan options.