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How to Qualify for Veterans Affairs Loans

Veterans, active military members, surviving spouses, and others may qualify for Veterans Affairs (VA) loans when purchasing homes. The Department of Veterans Affairs backs VA loans, and applicants may receive several benefits through the arrangement. Those who qualify for a VA loan may not need to invest in costly mortgage insurance or maintain as high a credit score as a conventional borrower.

Individuals who receive a VA loan are not required to provide a down payment. As long as the applicant meets the terms of the VA loan, it remains one of the most economical financing arrangements available in the real estate market today.

Do You Qualify for a VA Loan?

Here are some basic requirements to qualify for a VA loan:

You meet the minimum qualifications for credit and income that private lenders require.
You hold a legitimate Certificate of Eligibility (COE) as the result of your service.
You are the unmarried surviving spouse of a veteran who died, is missing in action, or who is a prisoner of war.
You are the surviving spouse of a completely disabled veteran.
You paid your previous VA loan in full or another veteran purchaser agrees to assume the responsibility for the remainder of the loan.

Use VA Loans for More

In addition to purchasing a home or condominium in an approved location, veterans can use the loan program to build new homes, improve preexisting homes with energy-efficient renovations, or purchase pre-built homes.

You may qualify for a VA loan if you currently hold a conventional mortgage as well. To take advantage of veteran benefits, refinance your home under the VA loan program, use your equity to improve your home or pay down debt, or participate in an interest rate reduction refinance loan to secure the lowest mortgage rates.

If you have questions about your eligibility, you can speak with a representative at the Department of Veterans Affairs or to a lender that specializes in VA loans. Butler Mortgage offers a free pre-qualification screening for veterans. See if you pre-qualify for your primary home VA loan today by calling 407-931-3800!

USDA Loans

What is a USDA Loan?

When a person decides that they want to move to an eligible rural location, the Department of Agriculture offers different types of loans, one of them being a USDA loan. This loan allows home buyers to purchase a home with no money down, as well as 100% financing to those who qualify. As long as your credit score is at or around the 600’s and you meet the other requirements, this loan may be easier to get approved than a regular mortgage. It is also a good idea to see what qualifies as ‘rural’ in your state. The USDA guidelines are loose, so you could live in a small town or suburb outside a larger city that qualifies. A USDA Loan is used to promote small town living by making rural land more affordable.

Do I qualify?

When applying for a USDA loan, here are some helpful things to keep in mind:

What are your state’s income guidelines? You must meet these in order to qualify for a loan.
How many people are living in your house? What is the average income of the surrounding area? Both these factors will determine how much you qualify for.
Will the home you are buying be a vacation home or a rental property? You can only qualify for a USDA loan if it is your primary
Are you a lower-income buyer? Since no down payment is required, it may be easier for a household with a lower income to get a USDA loan than a regular mortgage.
What’s your credit score? In order to get the best deal possible on a loan, you have to have a decent credit score. Remember if your score is lower it could be because of credit errors, so be wary of those.

If you are looking to move to a more rural location, or prefer the convenience of purchasing a home with no money down, a USDA may be right for you. If you have any questions about applying, or are wondering if you qualify for this loan, call Butler Mortgage at 407-931-3800 for a free consultation.

Investing In Homeowner’s Education

Why You Should Invest in Homeowners’ Education Courses

These days, people can study almost anything in school, from how to become a professor of literature to how to bake wedding cakes. However, did you know you can also take homeowners’ education courses? These courses cover everything you might need to know as you prepare to buy a home.

Are You Ready?

The first thing homeowners’ education courses will cover is whether you’re ready to buy a home. Every individual is different, and just because you aren’t ready now doesn’t mean you’ll never qualify. However, you can prepare yourself in a few key ways. Think carefully about your plans for the home. Discuss whether you need pre-approval for mortgages and other loans, and be prepared to set a budget.

Navigating Mortgage Payments

Most potential homeowners aren’t familiar with how mortgages work and the options can be confusing. Homeowners’ education courses teach you how to find the best lender, how to navigate loan and insurance options, and how to interpret mortgage-related terms and paperwork.

Recognizing Fraud

Hopefully, you won’t encounter fraud as you buy your first home. However, unscrupulous people take advantage of inexperienced buyers. When you take a homeowners’ education course, you’ll learn how to recognize fraud and how to protect yourself from it.

All You Need to Know About FHA Mortgage Rates

Owning your own home can make you feel secure, but you may need a mortgage to make that dream real. There are several types of mortgages to choose from, including an FHA. An FHA mortgage is one insured by the Federal Housing Administration. Borrowers pay mortgage insurance, which protects the lender should the buyer default on the loan. Although FHA mortgages seem to benefit only the lender, they carry many benefits for the buyer as well.

More Lending, More Mortgages

Perhaps the biggest benefit of FHA mortgage rates is that they allow lenders to offer more mortgages at attractive interest rates. The FHA has endorsed more than 325,000 more mortgages than usual in recent years. As a result, more buyers have been able to invest in homes. Additionally, the increase in FHA mortgage rates led to better financing. Buyers can currently finance a home with just 3% down, versus 3.5%.

Lower Insurance Premiums

Since the 2015 FHA rate cut, lenders have been pushing for mortgage insurance premiums (MIPs) to end once a buyer’s loan reaches 78% of its original balance. Over time, this would drastically lower buyer costs and allow more people to qualify for shorter mortgages with better financing. Lenders hope that, over time, FHA mortgage rates will help the economy recover.

3 Ways to Save Stress When Buying a Home

Buying a home, whether you’ve done it before or not, is exciting, but there are many things to consider which can make the process stressful. We have some tips to help make the process a bit easier.

Know your budget

Knowing your budget is the most important part of buying a house. It will only hurt you in the long run to look at homes that are out of your price range. Know the price range you can afford and don’t stray from it if you can help it.

Know what you want

Almost as important as knowing your budget is knowing what you need and want. Go into the search with a plan for what you are looking for, what you are willing to compromise on, and what you are not. Look down the road, as well; you may be in this house for years. Will it still suit you and your family then?

Be fully prepared

Preparing correctly beforehand will save you a lot of stress. Increasing your credit score can drastically lower your house payments. A score of 580 might see your loan approved, but a score of 750 or more will get you the best deals. Also, remember to plan for the down payment and closing costs on your new house! Buying a house in Florida is a big deal. Make sure you go into the buying process with a clear plan so that you come out the other end with a home you’ll cherish for years.

The Financial Benefits of Owning a Home

The benefits of owning your Florida home are many and varied; they affect both financial and personal areas of your life.

If it is yours, you can do what you want to it. Want to knock that wall down? Go ahead, just make sure you know what’s in it, first. Paint half the walls chartreuse and the other half lime green? Cool. This kind of freedom, even if you never take advantage of it, is a major benefit over renting a home.

A home you own can also be passed down. Give your children and grandchildren a place to put down roots and make memories. You can’t do that as well in a rented house.

While the price of buying a home may seem daunting, in the long run, it can actually cost you more to rent than to own. One major benefit of owning a home in Florida is the tax benefits will help offset some of the cost of owning the house. Also, while rent can fluctuate based on many factors, if you get a fixed-rate mortgage your payments will always be the same.

Real estate is a solid long-term investment. If you own your home for at least 6 years, you are accumulating wealth. Housing real estate generally remains stable even in the sometimes volatile real estate market, so you can be secure in this investment.

In the end, buying a home is an investment for life. You are able to hold a piece of land and call it your own while building its value over time.

100% Financing with USDA Loans!

Are you thinking you’re not getting any younger and you still can’t afford to actually buy a home? Well think again… you can apply for a USDA home loan and it’s 100% financing.

The USDA home loan program offers you zero down payment, lowest monthly installments and the lowest possible rates compared to other home loans. Why is the USDA home loan a top choice among first time home buyers and those looking to refinance?