The article will provide you with latest mortgage guidelines for the 2018 year which needs to be fulfilled when applying for a bad credit VA loans in Florida. “The Sunshine State” and with good reason. It’s tropical climate and year-round livability is one of the most visited states in the Union. If you recall back in American History class, it was Ponce de Leon that “discovered” Florida in 1513. The name Florida is culled from Spain’s Easter celebration called Pascua Florida which when translated means Feast of Flowers. Today, Florida is a top tourist attraction and hosts vacationing visitors from around the country and around the globe. And, if you’re a citrus lover, odds are that orange, lemon or grapefruit you crave came from Florida.
Tourists flock to Florida for a variety of different reasons and has attractions for nearly everyone’s taste. The most visited family resort is without a doubt Walt Disney World in Orlando, Florida. SeaWorld and Universal Studios call Florida home as well. In fact, Orlando attracts more visitors than any other amusement park in the United States, including California. Florida attracts professional and amateur fishermen as well both freshwater and saltwater fishing are popular. Just simply laying out in the sun on one of Florida’s famous white-sand beaches is one of the most relaxing vacations to be had. Some of the best diving is found off Key Largo.
More fun facts about Florida? Cape Canaveral is where NASA launches its space flights. Florida is the southernmost contiguous state in the Union. The sport drink Gatorade was developed at the University of Florida and named after its mascot, the alligator. Suntan lotion was invented in Florida and if you think about it, where else should the UV protection cream come from?
Due to its year-round popularity and favorable climate, visitors can sometimes find that Florida is simply too hard to resist and decide it’s time to move, especially those who live up north and experience cold, long winters. When someone from say Rhode Island visits Miami in the middle of winter and leave the airport when it’s five degrees below zero and land in Florida where it’s 70, it doesn’t take much for someone to ask, “I wonder what it would be like to live here?” This apparently is a relatively common question which continues to spur the real estate industry.
Florida has always been a business-friendly climate with low taxes and incentives and when coupled with the current economic growth experienced today in the United States Florida should see continued growth in the real estate market, both residential as well as commercial. Real estate market and home values in cities like Miami, Orlando, Jacksonville, Tampa, St. Petersburg, St. Petersburg are increasing. Recent data indicate that household net worth is at an all-time high and real estate is one of the drivers.
Home buyers in Florida are seeing the financing markets stabilizing as they have done so for the past seven or eight years and should continue to do so. Both conventional and government-backed home loan programs are readily available. Florida is home to several militaries and naval bases throughout and around the state, the VA home loan is a popular choice that’s why people are looking for bad credit VA loans in Florida.
For those buying real estate in Florida and want to come to the closing table with very little cash the VA mortgage is the best choice. While there are other low down and zero down programs the VA loan not only requires no down payment but also restricts the borrowers from paying certain types of closing costs, keeping cash to close at a minimum. There is no monthly mortgage insurance included in the mortgage payment which aids borrowing power.
VA loans are available for active duty personnel with at least 181 days of service, veterans of the Armed Forces, National Guard and Armed Forces Reserve members with at least six years of service and surviving spouses of those who have died while serving or from a service-related injury. When applying for bad credit VA loans in Florida you have to know that they are available in both fixed and adjustable rate types as well as hybrids.
Qualifying for a VA loan is much like qualifying for most other mortgage programs as it relates to employment, income, assets and credit. The VA issues its guidelines for these categories and lenders are asked to follow them. Lenders will need to verify at least two years of employment, sufficient income to satisfy current monthly debt, enough funds available for closing costs and verifying a responsible credit history. However, the VA does not specify a minimum credit score but most lenders ask for a minimum score to be at least 620.
Yet because we are a direct lender and are approved to underwrite and fund a VA home loan application we have the ability to approve a VA application when someone thinks they have bad credit. Again, the VA does not directly state what is and what is not bad credit but for someone with a qualifying credit score below 620 they might not be approved if they don’t work with the right lender. We at USA Mortgage can look at other positive aspects of a credit application and not just look solely at a credit score.
When we request a credit report from the three main credit repositories of Equifax, Experian and TransUnion we also request a credit score from each. Credit scores, commonly referred to FICO scores, are three-digit numbers ranging from 300 to 850. While we may not be able to approve a loan with bad credit VA loans in Florida with a qualifying score of say 500 we can consider an approval with a qualifying score of say 590 but there need to be other compensating factors shown in the loan file.
A compensating factor is an aspect of the loan file that can offset something negative. In this instance, a credit score is just below the minimum. An approved VA lender has the ability to consider and document compensating factors when justifying a loan decision. For example, a lender can approve a loan application with less than stellar credit if the applicant has been at the same job for a long time. Extended employment shows stability and is an indication the applicant will continue to be employed well into the future. Someone putting down a larger down payment than needed can also be a compensating factor. Significant cash reserves can also help sway an underwriter to approve a loan application.
But it’s important to note here to let me look at your credit report and credit scores and don’t rely on your own internet research to see whether or not you can qualify for bad credit VA loans in Florida, even if you think you have really low FICO score. If you’re ready to buy a home in Florida and want to use your VA home loan eligibility to finance the transaction, let’s talk. You may very well be surprised at the result!
If you have been turned down for a VA loan or have any questions about real estate or mortgage please contact the author, Matt Herbolich, MBA, JD, LLM by phone or text at 786.390.9499, or by email at firstname.lastname@example.org. Mr Herbolich works when you work, so contact him anytime.”