Florida VA Home Loan

Core Mortgage Financial is proud to serve all Veterans with VA mortgages. Florida VA Home Loans are not easy to complete. It takes a loan officer with VA experience to understand the complicated VA process and procedures. Florida VA Home Loan credit scores below 600 are readily available in our lender portfolio. If you have a credit score below 620, we need at least three open accounts for twelve month period, with no late payments. If you have a credit score above 620, we only need two open accounts for twelve months.

Veterans administration does not specifically have any credit score requirements. Recently, veterans have been raising the same concern to include borrowers passionate plead over the phone with me about this particular issue. The VA is known for having very liberal guideline requirements, but this does not necessarily mean you can get a loan. Please remember the VA only guarantees the mortgage and does not lend directly to the veteran, spouse or service or service member.  Florida VA Home Loan lenders have overlays to protect themselves from losses for defaults.

Most lenders for Florida VA Home loans have at least a 620 minimum credit score requirements. Their investors have developed a model showing a higher default rate for lower credit score for Florida VA Home Loan clients. We have a few niche lender that can possibly go all the way down to a  560 credit score as a manual underwrite. Please give Core Mortgage Financial a call to discuss your options with very low scores.

Florida VA home loan has eligibility requirements. These include the following:

90 days or more of active duty service during wartime

181 days or more of active duty service during peacetime

Service member was discharged for circumstances that were not dishonorable

You are currently active duty personnel and have 90-181 days

Widow of a Veteran who died during service or because of service-related injuries and have not remarried.

A veteran must have been honorably discharged and served a minimum of 90 days in war time periods or 180 days in peacetime. For National Guard members, the requirement is a minimum of 6 years service. Spouses of deceased veterans (with a service-related death) can qualify if they have not remarried.

 Lenders like to see two steady years of employment in the same industry. We can waive the two year rule getting a private sector job in the same line of work as you career in the Military. We also can use college schooling as years worked in the industry.  An example of this would be a nurse in school for two years but lets say only been working for six months, this is not a problem and can get a Florida VA Home Loan.

We hope this blog has been helpful for all you Veterans seeking Florida VA Home Loans!
We are here to serve you, please do not hesitate to contact me with any questions!

Call us toll free today at  855-554-2673 (CORE)
Core Mortgage Management Team
Company NMLS #849597



Helpful Terms Defined:
Mortgage:
Collectively, the security instrument, the note, the title evidence, and all other documents and papers that evidence the debt. A Mortgage is a loan secured by a lien on real estate held in fee simple or on an acceptable leasehold estate. A loan made for the purpose of purchasing, building or rehabilitating real property, and secured by that property. A pledge of real property as collateral for payment of debt. The term is also used to describe both the mortgage (security instrument) and the promissory note evidencing the debt, which includes the terms of the debt’s repayment.
Note:
The evidence of indebtedness for a mortgage loan. A note is the instrument evidencing the indebtedness secured by a security instrument that sets forth the amount the owner owes the lender and the manner in which the debt is to be satisfied. The note establishes the payment terms, conditions under which prepayments may be made, and the lenders rights in the event of default. A written agreement between the mortgagor and the mortgagee specifying the amount and terms of repayment for a loan.

203k Home Improvement Loan Part 1 of 2

203k Home Improvement Loan Part 1 of 2

VA Mortgage Debt to Income limits

Core Mortgage Financial does not have a limit on debt to income ratios. A majority of VA mortgage lenders have overlays that limit  the debt to income ratio. Here is an example as to how the DTI ( debt to income) traditionally works.

Borrower A gross income is $5,000 monthly. The next step will be to take the monthly minimum payments that show up on his credit report. IE: car loan payment, credit card minimums etc. Next we look at his current housing expense. We take the minimum payments + the current housing expense and the new proposed expense and add these numbers up.

Example: Borrower A has the following bills:

Car loan $300
Credit cards payment $175
Student loan $100
Living Rent Free
Proposed new payment with taxes and insurance $1,800
TOTAL $2,375

We take the VA debt obligation of $2,375 divided by the income of $5,000 = .475%. We move the decimal point to the right and our debt to income is 47.5%.  The borrower qualifies for a VA mortgage with this DTI ratio.
Most lenders are have a max DTI between 41%-50% .
Core Mortgage Financial does not have a VA DTI limit or credit score requirement. As long as the automated system shows the loan is approved/eligible we can close the loan.
The highest VA debt to income ratio I have completed is 67%. The borrower had excellent credit score and large cash reserves in the bank. In order to have a high VA debt to income you must have compensating factors like high credit score and reserves. The automated system looks at credit score/history, debt to income and cash reserves when making a decision.

I hope this clarifies the VA debt to income ratios ! Last week i received two calls with regards to VA debt to income ratios.

Thanks !

855-554-2673 (Toll Free)
VA Home Loan Experts

Mortgage:


Collectively, the security instrument, the note, the title evidence, and all other documents and papers that evidence the debt. A Mortgage is a loan secured by a lien on real estate held in fee simple or on an acceptable leasehold estate. A loan made for the purpose of purchasing, building or rehabilitating real property, and secured by that property. A pledge of real property as collateral for payment of debt. The term is also used to describe both the mortgage (security instrument) and the promissory note evidencing the debt, which includes the terms of the debt’s repayment.