Step-by-Step VA Loan Application Process: A Veteran’s Guide to Homeownership in Tampa, FL

For veterans, active duty service members, and National Guard members living in Tampa, FL, VA loans offer a powerful option to purchase a home without the stress of a large down payment or the added cost of private mortgage insurance. At Ebenezer Mortgage Solutions, we prioritize your borrowing success by ensuring you fully understand the benefits—and potential drawbacks—of VA loans and other home loan options. This step-by-step guide helps you navigate the VA loan process, ensuring you feel informed and comfortable every step of the way.

What Is a VA Loan and Why Is It So Beneficial for Veterans?

A VA loan is a mortgage loan specifically designed to help eligible veterans, active duty service members, and National Guard members finance a home with favorable terms. Backed by the U.S. Department of Veterans Affairs, this loan guarantee ensures that qualified borrowers can enjoy lower interest rates, no down payment, and no mortgage insurance.

Learn more about how a VA loan works and its specific benefits for veterans.

Top Benefits of a VA Loan:

At Ebenezer Mortgage Solutions, our loan officers understand the unique challenges veterans face when securing financing. We’re here to simplify the VA loan process while offering personalized advice to fit your budget and long-term goals.

Understand the pros and cons of VA loans to make informed financial decisions post-closing.

VA Loan Application Process

Step 1: Check Your VA Loan Eligibility

To qualify for a VA loan, you’ll need to provide proof of eligibility. Eligibility typically depends on service duration, discharge status, and other factors. Most veterans, active duty service members, and National Guard members meet these requirements, but it’s essential to obtain a Certificate of Eligibility (COE) to confirm your status.

Documents Required for a VA Loan Application:

Tip: If you’re unsure how to obtain your COE, our team can assist with the process. Contact us by phone or email for expert guidance.

Step 2: Get Prequalified and Preapproved

Before you start working with a real estate agent, you’ll want to determine your budget by getting prequalified for a VA loan. Prequalification gives you an estimate of how much you can borrow based on your income, debt, and credit. For a more formal loan offer, you’ll need preapproval, which involves a deeper dive into your financial situation by the loan officer.

Documents Required for Preapproval:

Our underwriting team ensures that your VA loan application is processed smoothly while keeping your budget in mind. We’ll also work with you to improve your credit or debt-to-income ratio if necessary. At Ebenezer Mortgage Solutions in Tampa, our loan officers take the time to explain your loan options in detail, ensuring you understand both the potential benefits and any factors that could affect your borrowing experience. We’ll guide you through prequalification and preapproval, making sure you’re confident before moving forward.

Use our mortgage calculator to get an idea of how much home you can afford based on your income, debts, and loan terms.

Step 3: Work with a VA-Savvy Real Estate Agent in Tampa, FL

Not every home qualifies for a VA loan, so it’s important to find a real estate agent familiar with VA loan requirements. They’ll help you locate properties within your budget that meet VA property standards. The agent will also assist you in negotiating the contract and securing the best price for your home.

At Ebenezer Mortgage Solutions, we can recommend experienced real estate professionals to help you find the perfect home.

VA Loan Application Process

Step 4: Home Inspection and VA Appraisal

Whether you’re buying a home in Carrollwood, Brandon, or the heart of Tampa, conducting a home inspection is a critical step to identify any issues before closing. The VA doesn’t require a home inspection, but they do require a VA appraisal to ensure the home meets basic safety and property standards. A home inspection is highly recommended to identify potential issues, such as plumbing or structural problems, that the appraisal may not uncover.

VA Appraisal vs. Home Inspection:

Step 5: Underwriting and Loan Approval

Once your VA loan application is submitted, the underwriting team will review your credit history, income, debt, and property details to assess your eligibility. The underwriter will verify that you meet the necessary requirements, such as acceptable credit and a manageable debt-to-income ratio.

The underwriter will ensure your eligibility for the VA loan guarantee is verified and that you have sufficient home insurance coverage.

Tip: During this stage, avoid taking on new debt (like opening a new credit card) as it could impact your approval.

Step 6: Closing the VA Loan

On closing day, you’ll sign the final documents, pay any required fees, and officially become a homeowner. One major benefit of a VA loan is that many of the closing costs (like mortgage insurance and loan guarantee fees) are reduced or waived altogether.

At Ebenezer Mortgage Solutions, we believe closing day should be exciting, not stressful. That’s why we’ll ensure you understand every document you’re signing and any fees associated with the process, so you feel confident as you finalize your VA loan.

Step 7: Post-Closing: Maintaining Your VA Loan and Exploring Refinancing Options

After closing, it’s important to stay on top of your mortgage payments. Consider setting up automatic payments through your bank to avoid missed payments. If interest rates drop or you want to access your home’s equity, you can explore refinancing options, like a VA IRRRL (Interest Rate Reduction Refinance Loan).

Whether you’re managing your VA loan payments or considering refinancing to lower your interest rate as the market changes, Ebenezer Mortgage Solutions offers refinancing options tailored to your needs. If a VA loan isn’t the best fit in the future, we can also explore other options like conventional loans or FHA loans.

FAQs About the VA Loan Process

What credit score do I need to qualify for a VA loan?

How long does the VA loan process take?

Do I need a down payment?

Why Choose Ebenezer Mortgage Solutions for Your VA Loan in Tampa, FL?

With years of experience helping veterans, active duty service members, and National Guard members in Tampa, Hillsborough County, and the surrounding areas, our loan officers ensure that you’re not just getting a VA loan—you’re making a smart financial decision. We believe in complete transparency, so we’ll help you weigh the benefits and drawbacks of every option, including VA loans, refinancing, or conventional loan products. Our goal is to empower you with the knowledge needed to make confident, informed choices.

Call us today at (813) 284-4027, or visit our office at 3203 W Waters Ave Tampa, FL 33614 to get started on your VA loan journey!

Pros and Cons of VA Loan: What Every Veteran Should Know

A VA loan is one of the most attractive mortgage products on the market. It creates a fair playing field for veterans and military members, allowing them to achieve the dream of homeownership. However, just like any other mortgage product, VA loans come with their own advantages and disadvantages.

 

In this blog, we're going to discuss what a VA home loan is and its pros and cons. Read on to learn more about this mortgage product and decide whether it's the right home loan for you.

Pros of a VA Loan: What Every Veteran Should Know

What is a VA Loan?

 

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs (VA). But even though it's guaranteed by the VA, the actual mortgage product is issued by VA-approved lenders.

 

The VA guarantees up to 25% of loans higher than $144,000 or 50% if the mortgage amount is just $45,000 or smaller. This guarantee allows lenders to offer more favorable terms and rates to eligible borrowers compared to other mortgage products in the market.

 

Although VA loans sound like a great mortgage option, they are not for everyone. VA loans are only available to eligible veterans, active-duty military members, and their surviving spouses. To qualify for a VA loan, you must fulfill at least one of the following:

  • You served 90 consecutive days of active-duty service during wartime.
  • You served 181 days of active-duty service during peacetime.
  • You have served 6 creditable years or 90 days of active-duty service in the National Guard or Selected Reserve.
  • You are the surviving spouse of a veteran who lost his or her life in the line of duty or as a result of a service-related disability.

Advantages of a VA loan

 

Now that you have an idea of what a VA loan is, let's discuss its advantages and disadvantages. Let's start off with some of the more notable VA loan pros.

 

No Down Payment Required

 

Probably the biggest selling point for VA loans is that they do not require a down payment. For most people, a down payment can be a hindrance in home buying. It takes years before they can save enough funds for a down payment.

 

Conventional loans typically require a 20% down payment. But if you're a first-time homebuyer, you can put in as low as a 3% down. With FHA loans, you can put in a 3.5% down payment if your credit score is 580 or higher.

 

However, this still means that you need thousands of dollars to start your homebuying process. Moreover, the purchase price in the housing market is constantly increasing. This means that the required down payment amount is also increasing. But for VA borrowers, home buying might be somewhat easier as they don't need to shell out cash for a down payment.

 

Nonetheless, it's important to note that there are cases where a VA borrower needs to pay a down payment. An example of such cases is when the sales price of the property is higher than its appraised value, you'll need to make a down payment to cover the difference. Another one is if you have reduced VA entitlement, you're also likely to pay a down payment.

 

No Mortgage Insurance

 

With conventional mortgages, if the borrower is not able to contribute a 20% down payment, they would have to pay for Private Mortgage Insurance (PMI). FHA loans also have their own Mortgage Insurance Premium (MIP), which you have to pay for the life of the loan.

 

These mortgage insurances are meant to protect the mortgage lenders if ever the borrower defaults on the loan. But with a VA loan, even if you didn't put in any down payment at all, you won't have to pay for mortgage insurance.

 

Lower Interest Rates

 

Another benefit of being guaranteed by the federal government is that mortgage lenders are more likely to issue lower rates for VA loans. VA rates are typically 0.25% – 0.42% lower compared to conventional rates. With a lower interest rate, borrowers will be able to save more money in the long run.

 

Lower Closing Costs

 

VA closing costs typically range from 3% to 5% of the purchase price. But unlike traditional closing costs, VA loans' closing costs have perks that make the expense not too heavy on the pockets.

 

As the buyer, you'll have to take responsibility for the loan origination fee, VA funding fee, title insurance and other costs. But one of the advantages of a VA loan is that a VA-approved lender cannot charge you more than 1% for the origination fee. The origination fee is the cost needed to process the loan.

 

A VA loan also has non-allowable fees. These fees are costs that lenders cannot demand you to pay. Non-allowable fees include attorney fees, real estate agent fees and payment for appraisals requested by the lender. The lender themselves might have to cover these costs.

 

Another perk of a VA loan is that you can ask the seller to pay up to 4% of the closing costs. They might not agree to do it, but you can definitely ask during negotiations.

 

Additionally, with a VA loan, you can opt to have the VA funding fee rolled into the total mortgage amount. This can help lessen the out-of-pocket cash you need to pay upon closing.

 

Easier to Qualify

 

Your credit score might not be a major factor for the VA. But it is important for a mortgage lender along with other financial requirements.

 

Nonetheless, the VA allows for a higher debt-to-income (DTI) ratio. Generally, mortgage lenders require a DTI of 36% or lower. But with a VA loan, you can have a DTI of no greater than 41%. Still, some lenders might even accept a DTI higher than that.

 

Convenient Refinancing Options

 

When it comes to refinancing, the VA home loan program has two options to choose from. First is the VA Cash-Out Refinance where borrowers can turn 90% of their home equity into cash. They can then use this money to consolidate debt, renovate the house, or for any other needs.

 

The second one is the Interest Rate Reduction Refinance Loan (IRRRL), also known as the VA Streamline Refinance. This refinance option can help veteran homeowners easily change their mortgage terms, lower interest rates, or switch from an adjustable to a fixed-rate mortgage. It is called 'streamline' because it often requires less paperwork since you're only refinancing from one VA loan product to another.

 

Easier to Get Back On Your Feet After a Financial Hurdle

 

For a traditional mortgage, you can be eligible four years after a Chapter 7 bankruptcy and two years if it's a Chapter 13. With a VA loan, the waiting period is just half of those.

 

VA loan borrowers will only need to wait two years after a Chapter 7 bankruptcy, foreclosure or short sale. And for a Chapter 13 bankruptcy, you'll only need 12 months after on-time payments.

 

Moreover, the VA also offers assistance to borrowers to help them avoid foreclosure. This is because the goal of VA home loans is not only to get veterans into homes but also to keep them there.

Disadvantages of a VA Loan

 

Just like any other loan program, VA home loans have some potential disadvantages. Here are some of the cons of VA loans.

 

Funding Fee

 

VA loans require a funding fee. This fee is charged to help keep the VA loan program running for future generations. The amount you'll pay will depend on the down payment you put in. If you put in less than 5% down, you'll have to pay a funding fee of 2.3% of the total loan amount. Additionally, this fee might increase the second time you use a VA home loan. The funding fee can be paid upon closing or rolled into your mortgage.

 

Property Restrictions

 

All properties that will be bought with a VA home loan will have to undergo a VA appraisal. This appraisal is meant to check if the condition of the property is safe and sound for the homebuyer. However, most borrowers find the appraisal too strict. Especially if they are considering an older property that needs a renovation.

 

Can Only Be Used For a Primary Residence

 

If you're thinking about buying a second home or an investment property, then a VA loan is not for you. VA loans can only be used on primary residences where the borrower intends to live full-time. However, it might be possible to purchase a multi-unit property where you use one unit as your primary residence and then rent out the other units.

 

Less Flexibility

 

Some sellers are not inclined to accept a purchase offer made with a VA loan. They often have this misconception that VA home loans take a long time to process and are just a hassle to the seller. It might also be difficult for the buyer to make the offer attractive to the seller since you can't waive certain contingencies such as VA appraisals.

Ready to Apply for a VA Loan?

Now that you have an idea of the pros and cons of VA loans, it's time to consider whether it's the right mortgage option for you. If you're not sure yet, Ebenezer Mortgage Solutions is here to help.

 

Ebenezer Mortgage Solutions is a mortgage broker in Tampa. We work with a large network of lenders including the ones that offer a VA loan in Tampa. We can process the application with multiple lenders so that you don't have to. And then with our experience and knowledge, help you decide which one suits you best.

 

If you're ready to become a homeowner, Ebenezer Mortgage Solutions is ready to help you. Call us today at (813) 284 - 4027 so we can start working on getting your dream home.

5 Benefits of Using a VA Home Loan

 

The VA loan is one of the most powerful mortgage options on the market. With its significant financial advantages, it allows veterans, active military members, and eligible surviving spouses to fulfill their dream of homeownership. To see how powerful a VA loan can be, let’s review some of the benefits it can provide.

 

Zero Down Payment

 

- Buying a house with no down payment is probably the biggest benefit of a VA loan. This means you'll need less money up front, and you can use your savings for renovating or buying furniture.

 

No Mortgage Insurance

 

- A conventional loan's PMI can cost up to 1% of the loan amount each year. That means that if your loan amount is $250k, you'll have to pay an extra $2,500 annually! With a VA loan, even if you're not able to put 20% down, you won't need to pay for any mortgage insurance.

 

Lower Interest Rates

 

- VA loans are backed by the government. That means they have a lower risk for the lenders, allowing them to give lower interest rates to eligible borrowers.

 

Lower Credit Requirements

 

- A conventional loan requires a minimum credit score of 620. But with a VA loan, you can qualify with as low as 580.

 

The Benefit Never Expires

- VA loan is not a one-time benefit. Even if you're a veteran who used it years ago, you would still be eligible for the program now. In other words, you are entitled to use a VA loan again and again.

 

Think you are eligible for a VA loan?

Talk to a mortgage broker to find out how you can take advantage of the VA benefits. Call Ebenezer Mortgage Solutions at (813) 284-4027 today.

 

What Are the VA Loan Requirements 2022?

VA Loan Requirements 2022

 

The VA loan is an amazing program that was created to help veterans and service members looking to get into their dream homes. It's guaranteed by the Department of Veterans Affairs and allows eligible borrowers to purchase a home without a down payment.

 

Being a member of the military is one of the requirements to receive the VA home loan benefit. However, other conditions such as debt and credit history must be satisfied to qualify for the VA mortgage.

 

In this article, we're going to discuss the VA loan requirements you'll need in 2022.

 

What is a VA Loan?

 

The  VA home loan was created in 1944. This mortgage program helps veterans, active duty service members, and their eligible surviving spouses to buy, build, or refinance a home. Some of the VA loan benefits include:

 

  • No down payment requirement
  • No private mortgage insurance
  • Lower interest rates
  • Lower closing costs
  • No prepayment penalty

 

The Department of Veterans Affairs does not issue the loan. Instead, they guarantee 25% of the loan amount if ever the borrower defaults. This makes it less risky for the lenders and allows them to provide more favorable terms and benefits than other loans currently available.

 

VA Loan Eligibility Guidelines

 

Not everyone who serves the Armed Forces becomes eligible for VA home loans. To qualify, you must meet the following VA guidelines:

 

  • 90 consecutive days of active-duty service during wartime
  • 181 days of active-duty service during peacetime
  • Served 6 creditable years or 90 days of active-duty service in the National Guard or Selected Reserve
  • You are the surviving spouse of a veteran who lost his or her life in military service or from a service-related disability. This also applies to spouses of military members missing in action or those who became prisoners of war. Generally, you cannot have remarried.

 

If you did not complete the required length-of-service due to a service-connected disability or were discharged, you may still qualify for a VA loan. However, you will not be eligible for a VA loan if you received an honorable, bad conduct, or dishonorable discharge.

VA Loan Qualification Requirements

 

VA loans are issued by lenders. So other than being eligible, you also need to comply with a lender's qualification requirements. Thankfully, VA loans have more flexibility compared to other mortgage types. Additionally, VA borrowers are protected from unreasonable lender fees.

 

Here are the VA loan qualification requirements:

  • Down payment. One of the best features of a VA loan is that it doesn't require a down payment.
  • Credit score. The required credit score will depend on the lender you're working with. Some expect a minimum of 620, while others go as low as 580.
  • Debt-to-income ratio. With VA loans, most lenders would allow a max debt-to-income ratio of 41%. Debt-to-income (DTI) ratio is the portion of your monthly income that goes to debt repayments. Some lenders would allow a higher DTI if you also have a high residual income. Residual income is what's left of your income after paying major expenses.
  • VA funding fee. You'll also be required to pay a VA funding fee. It's a one-time payment which usually equals 2.3% of the loan amount. Moreover, you'll have the option to roll the funding fee into your mortgage so that you won't have to pay upfront.
  • Closing costs. Although VA loans don't require a down payment and PMI, you will still have to pay for the closing costs out-of-pocket. Usually, the closing costs would amount to 3-5% of the loan amount. This will be used to pay for expenses such as title fees, appraisal fees, and loan origination fees.
  • Property requirements. The property you purchase with a VA loan must be your primary residence for at least 60 days from purchase. You can't use a VA loan to buy a vacation or rental property. However, you can purchase a multi-unit home and live in one of the units. Additionally, the home you purchase should also meet the VA's minimum property requirements (VA MPRs)—meaning it should be safe and sanitary.

 

VA Loan Limit 2022

 

The loan limit for the VA loan program will depend on your entitlement.

 

With a full VA entitlement, there'll be no limit on how much you can borrow. But keep in mind that your lender will approve a loan amount based on your ability to repay it.

 

You will have a full entitlement if:

  • You've never used a VA loan before.
  • You've sold the property you bought with your previous VA loan and paid off that loan.
  • You have a qualified VA loan beneficiary assume your loan and have them agree to swap their entitlement with yours.
  • You applied for a one-time Restoration of Entitlement, which will allow you to keep your current home.  You would still have to pay off your previous loan.

 

On the other hand, a reduced entitlement will subject you to loan limits. As of 2022, VA loan limits range from $647,200 in most counties to $970,800 in high-cost counties. If you need more than that, your option would be to apply for a VA jumbo loan.

 

Furthermore, the loan limit will also apply if you have more than one active VA loan.

How to Apply for VA Loans

 

Let's say you meet the VA eligibility requirements, and you're ready to apply for a loan. Here are some of the application steps you need to prepare for:

 

Proof of eligibility. VA loan application is similar to other mortgage applications except for one thing—the VA Certificate of Eligibility (COE). The COE will tell the lender that you are eligible for the VA benefits. It will also let them know what type of VA entitlement you can receive.

 

Shop for a mortgage lender. Unfortunately, most lenders are just focused on working with the usual conventional or FHA loans. So this means that you need to look for a VA-approved lender. Consider multiple lenders, compare their rates and terms, and choose the one that suits your financial needs best.

 

Prepare your financial documents. Gather the documents you need such as W-2s, tax returns from the past two years, most recent paycheck stubs, and other necessary financial information.

 

Go house hunting and prepare for a VA Appraisal. Probably the most exciting part of homebuying is looking for a house to buy. While this part is fun, you need to keep in mind that the house you're purchasing should meet the VA MPRs. To confirm this, an appraisal, performed by a certified VA appraiser, will be ordered by the lender.

 

How a Mortgage Broker Helps with Your VA Loan Application

 

The whole home buying process can be overwhelming, especially for first-time homebuyers. Working with a mortgage broker can significantly improve this experience, making it easier and smoother for you.

 

At Ebenezer Mortgage Solutions, we have a very large network of lenders (including VA-approved lenders). That means we can do the lender shopping for you, saving you precious time and leg work. With our experience and knowledge, we'll help you choose the mortgage offer that works best for you.

 

Most importantly, we always have your best interest in mind. We'll be with you from the beginning of your application until you get the keys to your new home.

 

Call Ebenezer Mortgage Solutions today at (813) 284 - 4027 and let us start working to get you to your dream house.

How Does a VA Loan Work?

VA loans are a great opportunity for veterans and active military personnel to get a mortgage with favorable terms. It provides many advantages, making it a desirable option for eligible borrowers.

As a non-conventional mortgage program, it has certain characteristics that you should know before applying for a VA loan.

Who Can Apply For A VA Loan

  • Active-duty service for 90 consecutive days during wartime
  • Active-duty service for 181 days during peacetime
  • Served for 6+ years in the National Guard or Reserves and was honorably discharged, retired, or transferred
  • Spouses of service members who died on active duty or from service-related disabilities, as well as prisoners of war and people who went missing in military-related circumstances

Advantages Of VA Loans

  • No required down payment
  • Low interest rates
  • No mortgage insurance
  • No minimum credit score (although some lenders may have specific eligibility criteria)
  • Limited closing costs
  • No limit on the borrowed amount
  • Borrowers with a history of bankruptcy or foreclosure can apply
  • Not limited to first-time buyers
As you can see, eligible borrowers can enjoy the diverse benefits of VA loans. This is because this program is backed by the government.

In case the borrower doesn’t pay the debt off, the VA (Department of Veteran Affairs) will pay part of it for them. Hence the lenders are more willing to provide less strict loan terms as they have a guarantee that they will get the money back one way or another.

What’s Different About The VA Loan Process

  1. It requires a certificate of eligibility. Before applying for a VA home loan, you need proof that you actually comply with the eligibility criteria. Therefore, the first step is to apply for the VA certificate of eligibility. You can get in contact directly with the VA or request it via a VA-approved lender.
  2. Get preapproved for a loan. During this part of the process, the VA is similar to other types of loans. You have to choose a lender and apply for an estimated loan amount. However, you must know that VA-approved companies often charge additional fees, called funding fees. The overall closing costs, though, remain low due to smaller origination fees and the absence of some other payments.
  3. Go shopping for a house. The house you buy through a VA mortgage must be your primary residence. This means that you can’t get it for investments or vacation homes. Alternatively, you can apply for a VA loan to build your own home, instead of buying one.
  4. Get your home appraised. The VA appraisal is different from the appraisal for other types of loans. The VA has minimum property requirements since they will send an expert to make sure the house you chose complies with their demands.
  5. Close the deal. Once the house is chosen and the paperwork is ready, it’s time to sign the papers and move in. Don’t forget to double-check whether the terms of the deal are comfortable for you and discuss any doubts or concerns with your attorney or mortgage broker.
Want to know more about VA loans­? Call us at (813) 284-4027 to find out more details and apply for prequalification.

Don’t miss your chance to buy your dream home using the favorable terms VA loans offer.