Florida Mortgage : Learning Center

Successful FL Realtors depend on  FL Mortgage Professionals to stay informed of current mortgage related guideline changes.   Last week we were speaking with the top producing Realtor team in West Volusia County.  We learned that many home buyers were asking for low down payment options; so we broke it down from one question that must be asked:

• Are you a United States Veteran? 

If the answer is yes; then we can discuss the advantages of obtaining a guaranteed FL VA home loan.  With loan amounts under $417K, there is no down payment requirement, no PMI (private mortgage insurance) and of course no down payment.  And sellers can contribute up to 4% towards the buyers closing costs.  What a great program!

The savvy  FL Realtors, however, bring up the cost factor of the VA Funding Fee.  This is usually rolled into the loan amount and costs 2.15% of the mortgage amount borrowed.  If the Veteran has used his Entitlement on a previously owned home; the VA Funding Fee can jump to 3.3%.  That can be over $10k for FL home purchases over $300k.  But there is a VA solution.

Have the Veteran put down 5% and the VA Funding Fee drops to 1.5% for subsequent Entitlement users.  A 5% down payment VA home loan still has no PMI which can save the Veteran thousands over the life of the loan.  Compare that with any, if available, conventional loan with PMI.

I am getting carried away – but I truly love sharing specific VA home loan information.  Remember, if down payments are an issue, ask if your buyer is a Veteran.  If not, lets look at USDA Rural Housing or an FHA home loan.

So much more to talk about.  Call me if you have any questions regarding pre-qualifying your next home buyer.  My name is Stephen Thaggard and I can be reached at 407-733-6425.

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