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VA Loans in Columbia County, Florida: Take Advantage of the Zero Down Payment

With average housing prices increasing yearly, home ownership is becoming more difficult for Veterans. Even though you can take out a mortgage to fund your home purchase, applying and qualifying for the same can be problematic. Conventional home loans have various stringent requirements that you must meet to qualify.

Besides, some lenders impose predatory terms by charging high fees and outrageous interest rates, costing borrowers their life savings and leaving them in debt. Many Veterans who opt for the traditional mortgage route likely end up in foreclosure.

Fortunately, VA loans are here to help by providing a financial lifeline to Veterans and active service members aspiring to become homeowners. This loan program is available to eligible borrowers through a partnership between the U.S. Department of Veteran Affairs and private lenders.

With a VA loan, you can buy your dream home anywhere in the country with zero down payment. You only need to meet the minimum eligibility requirements to secure the loan and become a homeowner.

What Is A VA Loan?

A VA loan is a government-backed military benefit that allows eligible Veterans, active service members, and their surviving spouses to become homeowners with no down payment required.

This home loan program has been around since 1944, benefiting millions of Veterans and service members. The U.S. Department of Veteran Affairs guarantees the loan, allowing private lenders to issue qualified applicants mortgages on favorable terms.

Unlike a conventional mortgage, a VA loan has no down payment, and you don’t need to pay private mortgage insurance (PMI). Eligibility requirements are highly flexible, making it easy to qualify. Above all, it has lower interest rates, fewer closing costs, and a higher allowable Debt-to-Income ratio, making it one of the most popular credit options.

How Does a VA Loan Work?

VA loans work like any other mortgage but with slight differences. First, the loan is only available to Veterans, active service members, and their surviving spouses, meaning civilians cannot apply. It remains a military benefit exclusive to eligible borrowers from the armed forces.

Besides, you don’t have to put money down at closing since the government has already guaranteed the loan. The VA guaranty also eliminates the need for private mortgage insurance and mortgage insurance premiums.

While the VA department sets the terms and eligibility requirements, it does not disburse the funds. Approved private lenders, including banks, credit unions, and mortgage companies, issue the loans to successful applicants.

When applying for a VA loan, you must obtain a Certificate of Eligibility (COE) from the VA department. The document highlights your military service history and confirms your eligibility for the loan.

However, having a COE does not guarantee you will receive the loan. Some lenders have additional requirements that you must meet to qualify for a VA loan. Fortunately, most VA-approved lenders are flexible and often offer favorable terms to borrowers, increasing your chances of securing the loan.

After getting approved and clearing closing costs, you can use the loan proceeds to purchase or construct your dream home. You can also use your VA loan to repair or renovate an existing property.

Types of VA Loans

There are four main types of loans under the VA housing assistance program, and these include:

VA Home Purchase Loan

A VA home purchase loan is the most popular mortgage loan available to Veterans and military service members. This zero-down payment loan allows you to buy, build, or improve a home in your desired location. You can use the funds to acquire a single-family home, condo, duplex house, or manufactured home.

Interest Rate Reduction Refinance Loan (IRRRL)

Even though VA loans have favorable terms, such as lower interest rates, monthly mortgage payments can become unaffordable due to various economic factors beyond your control. Fortunately, you can take out an Interest Rate Reduction Refinance Loan (IRRRL) to protect you from foreclosure.

This loan allows you to renegotiate with your lender to replace your current VA loan with a new one under fresh terms. The lender will issue you a new loan with reduced interest rates to make your monthly mortgage payments more affordable.

Cash-Out Refinance Loan

A cash-out refinance loan is like a reverse mortgage, allowing you to replace your current VA or non-VA loan with a new one under fresh terms. The lender pays off your existing loan and issues a new one. You can then take out cash against your home’s equity to pay off your debts and cover your everyday expenses.

Native American Direct Loan (NADL)

As the name suggests, a Native American Direct Loan is exclusive to Native American Veterans, service members, and their spouses. This credit option allows you to buy or build a home on tribal or federal trust land.

Unlike other VA loans that rely on private lenders to issue loans, the VA department gives NADL loans to eligible applicants directly. NADL loans do not have down payment or mortgage insurance requirements.

VA Loan Eligibility Requirements

Like any other mortgage, VA loans have various eligibility requirements that you must meet to get financing. Firstly, the home or property you wish to buy must be your primary residence. You must also request a Certificate of Eligibility from the VA to verify your qualifications.

Here are additional eligibility requirements that you must meet to stand a chance. One of these conditions must be true to secure a VA loan.

  • You served for 90 consecutive days without a break

  • You served for at least 24 continuous months during the Gulf War period to present

  • You served for at least 90 days before being discharged because of hardship or a force reduction

  • You served for less than 90 days and were discharged because of a service-related disability

  • You served actively for 181 days during peacetime

  • You served for more than six creditable years with the National Guard or Reserves

  • You were discharged honorably or placed on the retired list

Your surviving spouse can apply for a VA loan if:

  • You have been Missing in Action for more than 90 days

  • You have been a Prisoner of War for more than 90 days

  • You passed away in service or from a service-related disability, and the spouse remains unmarried or married after age 57 years or after December 16, 2003

  • You were disabled but passed away from other service-unrelated causes

Top Reasons to Get a Zero Down Payment VA Loan in Columbia County, Florida

  • No down payment
  • No private mortgage insurance
  • No mortgage insurance premiums
  • No prepayment penalty
  • No loan limit if you have maximum entitlement
  • Competitive interest rates
  • Multiple refinance options
  • Flexible eligibility requirements
  • Limited closing costs
  • Lifetime benefit
  • Foreclosure avoidance programs

Possible Downsides of VA Loans

  • You must pay a VA funding fee
  • For primary homes only
  • Reluctant home sellers avoiding VA transactions

VA Loan written on paper sheet

How to Apply for a VA Home Loan?

Applying for a VA home loan is a fast and straightforward process. After all, the program aims to make it easier for Veterans and military members to acquire mortgages without filling out numerous forms and meeting stringent eligibility demands.

Here’s a step-by-step guide to applying for a VA home loan:

Obtain a Certificate of Eligibility

The first step to applying for a VA home loan is to request a Certificate of Eligibility (COE) from the VA. A COE is a document that ascertains to the lender that you qualify for a loan. It contains details such as your military service history, VA loan entitlement, and more.

You can get the COE form by visiting the VA eBenefits online portal. Alternatively, a VA-approved lender can get a COE for you via the VA’s Web LGY system. You can also download the VA Form 26-1880, fill it out and send it to the VA via mail for approval.

Pre-Qualify with a VA-Approved Lender

Since the VA does not issue loans directly to borrowers, you must find a VA-approved lender to process your loan application. Finding a suitable lender shouldn’t be a problem since most banks and credit unions offer VA loans. Alternatively, you can get an accredited lender by contacting your VA regional office to talk to a loan representative.

Discuss Available VA Loan Options

You can choose between four VA loans, depending on your eligibility. First-time homebuyers can choose between a VA home purchase loan and a Native American Direct Loan.

If you have an existing VA loan, you can refinance it by applying for a Cash-Out Refinance loan or an Interest Rate Reduction Refinance (IRRRL) loan to help reduce your monthly mortgage payments and make them more affordable.

Get Pre-approved

Aside from a Certificate of Eligibility, your lender might request additional papers to verify your credit information before pre-approving your application. These documents may include:

  • The most recent bank statements
  • Copies of payment stubs
  • Credit score report
  • Home appraisal report
  • Federal income tax returns
  • W-2 forms for the previous two years

Negotiate with the Seller

Once you get pre-approved for a VA loan, you can scout for eligible homes and begin negotiations with sellers. A pre-approval gives you leverage to negotiate from a strong position.

Before signing a pre-sale contract, you can discuss the appraisal costs, closing fee, and overall selling price with the seller.

Get Approved

Getting approved is the penultimate step before securing a VA loan. Depending on the lender, it might take between 30 and 50 days to get the final approval. During this period, you should avoid activities that might jeopardize your loan approval, such as getting into more debt or inconsistent spending habits.

Discuss Closing Costs

One of the main benefits of a VA loan is that it has fewer closing costs. You can also factor in the closing costs into the loan. Moreover, anyone, including the buyer, seller, or lender, can pay the charges.

Prosperous borrowers may have to pay a funding fee at closing. This fee helps run the program and reduces the costs on taxpayers.

VA Loans Frequently Asked Questions?

Do all lenders offer VA loans?

Not all lenders offer VA loans. The VA department partners with selected private lenders, including banks, credit unions, and mortgage companies, to provide home loans to eligible borrowers. You can find an approved lender by contacting your regional VA office.

Can a lender get a Certificate of Eligibility for me?

Yes. A lender can get a Certificate of Eligibility for you via the VA’s Web LGY system. However, the VA must have sufficient data on you for a lender to use this method to get a COE for you.

Does a VA loan require a home appraisal?

A home appraisal is mandatory to qualify for a VA loan except for Interest Rate Reduction Refinance Loans. It determines the home’s value and ensures it meets the minimum safety standards.

What is a VA funding fee?

A VA funding fee is a one-time payment at closing. It helps run and maintain the program for future generations while reducing the cost and burden on taxpayers.

Must I pay the funding fee to get a VA loan?

The government uses taxpayers’ money to fund the VA loan program. Paying a funding fee is mandatory since it helps reduce the costs on taxpayers. However, the government may exempt you from paying a funding fee if:

  • You are receiving disability benefits

  • You are receiving retirement benefits but eligible for VA compensation for a service-related disability

  • You are a surviving spouse receiving Dependency and Indemnity Compensation

  • You have the Purple Heart Award

What are the limits for VA loans?

VA loans have no limits on eligible borrowers. Congress abolished VA loan limits in 2019, with the new loan taking effect on January 1, 2020. You can borrow any amount, depending on your available VA entitlement. Full entitlement means you have not used your home benefits or fully repaid your VA loan.

How many times can I get a VA loan?

Since a VA loan is a lifetime benefit, you can use it as often as you wish as long as you have full entitlement. You can even service two VA loans simultaneously.

The Top 5 Things to Do in Columbia County, Florida

If you are looking to buy a home in one of Florida’s less-dense rural counties, consider Columbia County. The county is renowned for its natural beauty, charismatic fauna, scenic parks, and historic architecture. Here are the top 5 things to do and places to visit in Columbia County, Florida:

Visit the Courthouse in Lake City

If you love history and sightseeing, the Courthouse in Lake City should be your first stop. This significant government building has a rich political past, serving as the region’s seat of power. Moving to the nearby Lake City Columbia County Historical Museum, you can round off your day.

Tour Spirit of the Suwannee Music Park

Spirit of the Suwannee Music Park is the ideal destination for music and nature lovers. This outdoor recreational space offers several music festivals and events throughout the year and has green areas for picnics and relaxation. Other nearby attractions include the Suwannee Canoe Outpost and Suwanne River Valley Golf Club.

Explore the Ruth B. Kirby Gilchrist Blue Springs State Park

The Ruth B. Kirby Gilchrist Blue Springs State Park is suitable for camping, paddling, snorkeling, hiking, nature study, and swimming. The park is open to the public throughout the year, but you have to pay an entry fee to enjoy what’s on offer.

Stop Over at the Falling Creek Falls

Falling Creek Falls is Florida’s only waterfall, making the area one of the most popular attractions in Columbia County. It features lush landscapes, tranquil scenes, and thick vegetation, allowing you to connect with Columbia’s flora and fauna.

Enjoy a Full Day of Fun at the Alligator Lake Recreation Area

The Alligator Lake Recreation Area is the ideal destination for hiking, nature trails, picnics, and biking. It offers over 1,000 acres of green space with elevated boardwalks for birdwatching and sightseeing. As the name suggests, the park is home to several alligators, and the best part is that entrance is free.

Get Pre-approved for a VA Loan Today!

You can now buy or build your dream home using VA loans in Columbia County, Florida. This zero-down payment mortgage is exclusive to Veterans, active-duty military, National Guard, and Reserve members.

It has flexible eligibility requirements, fewer closing costs, and competitive interest rates, making it one of the best home financing options. Talk to a VA loan expert to get pre-approved and start your homeownership journey today!

With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

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