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The Lowdown on Using the VA Purchase Loan to Buy Your House

If you’re a current or former member of the United States Armed Forces who is interested in buying a home, there’s a good possibility that you could qualify for the VA Loan program. Since 1944, Uncle Sam has helped a number of service members, veterans, and spouses of deceased veterans buy affordable housing with the help of the US Government.

With the VA Purchase Loan, you’re able to purchase a home without paying a down payment, provided the home’s sales price isn’t greater than its appraised value. The home loan doesn’t require you to purchase private mortgage insurance, it reduces the amount you’re changed in closing costs, and even prevents you from being charged with a penalty fee if you pay off your loan earlier than agreed upon. And since VA Loans aren’t restricted to first-time homebuyers, you can use this benefit more than once.

Another advantage of the VA Loan is that it allows the seller is able to cover some of the closing costs associated with the home. For this reason, you should always let your real estate agent know that you’re purchasing your home with a VA Loan. They might be able to get the seller to cover some of your cost.

In order to qualify for this home loan program, you need to be one of the following:

  • A wartime veteran with 90 consecutive active duty days served.
  • A peacetime veteran with a minimum of 181 days served.
  • A National Guard or Reserve with 6 years of service.
  • A spouse of a service member who died in service or from a disability as a result of a service injury.

A Couple Things to Note

The VA Loan guarantee isn’t a government-issued loan. The loan is handled by private lenders, with surety partly guaranteed by the US Government. Furthermore, even with the VA Purchase Loan program, you still need to apply for a home loan and meet certain income and credit requirements.

While there are no restrictions on the amount that you can borrow for financing your home, there are limits to how much liability the government assumes. For Florida, the 2018 loan limit for one unit is $453,100 across the entire state.

Are you a veteran interested in buying a new home in Florida? Let the Edge Group at Keller Williams help you find a home that’s perfect for you. We have offices in Jacksonville, Ft. Lauderdale, Orlando, Tampa, and the DeBary Area.

(We match the USAA Preferred Realtor Program)

Call or email us today to learn more!

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