If you’re a veteran searching for a golf course home for sale in Orlando or any of the surrounding communities (including Longwood, College Park, Winter Park and Windermere), you’re likely eligible for a VA loan – but there are a lot of things people don’t know about VA loan benefits.
Here’s the inside scoop.
What is a VA Loan?
A VA loan is a loan that you get through a lender that the Veterans Administration backs. That means your lender can give you better terms and interest rates because the VA guarantees a portion of it – the lender won’t lose out if you default on your payments.
Even if you have a difficult time getting other types of financing, this VA program can help you purchase a single-family home, a condo or a manufactured home, or to build a home. You can even use your benefit to buy and “fix up” a house or make a house more energy-efficient.
Who’s Eligible for VA Loans?
If you’re a veteran of the U.S. Armed Forces or a current service member, or you’re a qualified dependent of a veteran or current service member, you could be eligible for a VA loan. You must have been honorably discharged from the service. (Learn more about VA loan eligibility here.)
VA Loan Benefits for Orlando Homebuyers
VA loans have several benefits, including:
- No down payment. As long as the home’s sale price doesn’t exceed its appraised value, you don’t have to put any money down to buy a home with a VA loan.
- No private mortgage insurance premium requirements. Most homebuyers who have less than 20 percent of a home’s sale price as a down payment must buy private mortgage insurance, or PMI, until they’ve paid down at least 20 percent of the home’s value. That’s not the case with a VA loan – there’s no PMI requirement.
- Closing costs are limited. The VA limits the amount of money you can be charged for closing costs when you purchase with this type of financing. Even better, sellers are allowed to pay your closing costs, which can help you get into a home with very little money up-front.
- Lenders can’t charge you early repayment penalties. With many types of home financing, lenders are allowed to charge borrowers early repayment penalties (that’s so they can make up the money they’re losing in interest payments). If you use a VA loan, though, lenders are forbidden to charge you early repayment penalties; you can make extra mortgage payments and pay off your loan faster without any repercussions if you want to.
- Help if you can’t make payments. If you’re unable to make your mortgage payments, you can go to the VA and ask for help. There’s no guarantee that they will help you, but there are programs in place to do just that.
VA Loan FAQ
What’s the maximum debt-to-income ratio on a VA loan?
There’s no maximum debt-to-income ratio, or DTI, on a VA loan. Most lenders look for a DTI that’s lower than 36 percent, but the VA does not put a limit on it – and if your lender wants to approve you but your DTI is over 41 percent, the lender must provide the VA with compensating factors.
What is the maximum VA loan amount?
There’s no maximum VA loan amount, but the VA does limit the amount it will guarantee. The current limit is $417,000 in most parts of the country, but you can double-check here.
What’s the minimum credit score requirement for VA loans?
The VA doesn’t require a minimum credit score, but your lender might. However, even if your lender does have a minimum credit score requirement, the lender must still look at your entire loan profile before making a lending decision. That means many veterans who wouldn’t otherwise be eligible for financing can still get it with the VA’s help.
Can you only get one VA loan?
You can only get one VA loan at a time – but during your lifetime, you can get as many as you’d like to as long as the last VA loan you got is paid off. The benefit never expires, so even if you served many years ago and meet the requirements for this type of loan, you can use it.
Are You Buying a Golf Home in Orlando?
We can help you find your dream home on a golf course in the Orlando area. Call us at 407-529-4621 or get in touch with us online to talk about what you need – we’ll make it happen!
While you’re here, check out our:
- Real estate listings at Alaqua Country Club
- Bay Hill Club homes for sale
- Houses for sale at the Country Club of Orlando
- Keene’s Pointe Golf Club homes
- Homes for sale at Isleworth Country Club
- Real estate listings in Sweetwater Golf and Country Club
- Homes for sale at Heathrow and Legacy Clubs