Do you currently serve in the U.S. Armed Forces, Reserves, or National Guard, or did you serve in the U.S. military?
You may qualify for a mortgage in Fort Lauderdale through the VA home loan program, which can help you secure a loan with more favorable terms than you might obtain from a traditional mortgage.
Contact Loan Lawyers today for a free initial case evaluation to learn more about VA home loan eligibility in Fort Lauderdale and get legal assistance navigating the VA mortgage application process.
What Is the VA Home Loan Program?
The VA home loan program offers mortgages backed by the VA to current service members, veterans, and certain surviving spouses. These mortgages can offer more favorable terms than other conventional loans, including low or no down payment requirements and competitive interest rates. The VA does not issue loans. Instead, it works with a network of approved lenders who issue the loans. Because the VA guarantees repayment of some or all of the loan, lenders can offer more favorable terms due to the reduced risk to the bank.
VA home loans do not require private mortgage insurance for service members or veterans who put down less than 20 percent of the purchase price of a home. Finally, VA mortgage loans have more flexible credit requirements, allowing more service members and veterans who have had past financial problems to qualify for loans. Finally, VA home loans restrict the closing costs that lenders can charge, which, in combination with the ability to put zero percent down, can significantly reduce the amount of cash a service member or veteran needs to purchase and close on a loan.
Furthermore, the VA home loan program makes VA-backed loans assumable, allowing a service member or veteran to sell their home to another eligible service member or veteran, who can assume the existing mortgage terms. The assumable feature of VA home loans can make a home with a VA-backed mortgage more attractive to eligible service members or veterans if the existing mortgage on the house has more favorable terms than current market rates.
Basic Eligibility Criteria for VA Loans in Florida
Service members and veterans must meet specific service requirements to qualify for a VA loan. These requirements depend on the type of service performed or when a person served. Current active-duty service members qualify for VA loans after serving for at least 90 consecutive days. Service requirements for veterans who served in active duty depend on when the veteran served.
National Guard members can meet the service requirement if they served for one of the following:
- At least 90 days of non-training active-duty Title 10 service
- At least 90 days of active-duty service, including at least 30 consecutive days
- Six creditable years in the National Guard, and they continue to serve
- Six creditable years in the National Guard, and they received an honorable discharge or placement on the retired list
Armed Forces Reserve members can meet the service requirement if they served for:
- At least 90 days of non-training active-duty service, or:
- Six creditable years in the Reserve, and they continue to serve, or:
- Six creditable years in the Reserve, and they received an honorable discharge or placement on the retired list
Veterans who do not meet minimum service requirements may still qualify for a VA loan if they received a discharge under one of several exceptions, including:
- Hardship
- Convenience of the government (must have served at least 20 months of a two-year enlistment)
- Early out (must have served at least 21 months of a two-year enlistment)
- Involuntary reduction in force
- Certain medical conditions
- Service-connected disability
Surviving spouses may also qualify for a VA loan if they qualify for or currently receive certain types of VA Dependency and Indemnity Compensation, or if they have an active-duty spouse listed as missing in action or as a prisoner of war.
What Makes You Eligible in Fort Lauderdale?
Service members and veterans in Fort Lauderdale can become eligible for a VA loan if they meet the service requirements for eligibility and they obtain a VA certificate of eligibility (COE), which proves to lenders that an applicant meets the VA’s requirements for a VA-backed mortgage.
How Bankruptcy or Foreclosure Affects Eligibility
A bankruptcy or foreclosure can affect eligibility for a VA home loan, especially if you still have an outstanding balance on an existing VA loan. The VA extends full entitlement – meaning no cap on the amount of a loan that a service member or veteran can take out – if the applicant has never taken out a VA loan or has paid off or had another service member or veteran assume a prior loan. Military service members or veterans with outstanding balances on loans may have a cap placed on the amount that the VA will guarantee on another loan.
Bankruptcy and foreclosure may also cause lenders to view an applicant as a higher risk for a subsequent default or bankruptcy, which may lead lenders to offer less favorable loan terms or deny an application.
Required Credit and Income Standards
The VA does not set minimum credit and income standards for the home loan program. Each lender may establish financial eligibility criteria based on factors such as the loan size, down payment (if applicable), and current market conditions. However, VA-backed mortgages tend to have more flexible credit and income requirements than traditional, commercially available home loans.
Getting a VA Certificate of Eligibility (COE)
Service members, veterans, or surviving spouses can request a COE through the VA’s online portal or by mailing a completed Form 26-1880 to the VA. Some lenders can also assist service members and veterans in applying for their COE.
How a Fort Lauderdale Bankruptcy Attorney Can Help
A Fort Lauderdale bankruptcy attorney can help you apply for a VA-backed loan, including a VA loan after bankruptcy in Florida, by:
- Reviewing your service records to assess your potential eligibility for a VA-backed loan
- Helping you obtain your certificate of eligibility from the VA
- Assisting you with obtaining pre-approval from a lender before you begin house hunting
- Representing your interests during the appraisal and inspection process and guiding you through finalizing your loan and home closing
- Walking you through the VA loan process
Ready to regain financial stability and restore your peace of mind? Contact Loan Lawyers for a free, no-obligation consultation with a knowledgeable Fort Lauderdale VA loan attorney to discuss your eligibility for obtaining a VA-backed mortgage in Fort Lauderdale that can help you afford a home.
