How VA Loans Work in Florida: Eligibility, Rates & Maximum Loan Amounts

VA loans are an excellent option for their numerous benefits, but there are qualification parameters that must be met. To be eligible for a VA loan in Florida, the buyer must fall into one of the following categories:

Active-Duty Service Members: Eligible after serving 90 days of active service during wartime or 181 days of service during peacetime.

Prior Service Veterans: Eligibility varies between wartime service members and peacetime service members.

• Wartime service members: Eligible if they served 90 or more days on active duty and discharged or released with honorable conditions. Also eligible if they served less than 90 days but were discharged with a service-related disability.
• Peacetime service members: Eligible if they serve 181 days of consecutive active duty and were discharged with honorable conditions. Also eligible if they served less than 181 days but were discharged with a service-related disability.

National Guard Members and Reservists: Eligible after at least six years of service in either the reserves or National Guard. If service was less than six years, they must have been discharged due to a service-related disability and meet one of the following:

• Have been honorably discharged
• Have been placed on the retired list
• Have been transferred to an element of the Ready Reserve
• Continue to serve in the Selected Reserve

Spouses of Service Members: In circumstances where a service member died in the line of duty or from a service-related disability, their spouse may be eligible for a VA loan in Florida and elsewhere in the United States. There might be additional eligibility to service member spouses of personnel discharged for service-connected disability, medical or mental conditions or reduction in force measures.

VA loans are unique for a number of reasons, but they are appealing for the benefits they offer potential home buyers. The benefits of a VA loan in Florida and beyond include:

• 100% financing options, meaning you could purchase a home without a down payment
• No application fee
• No private mortgage insurance (PMI) required
• VA funding fee may be financed
• Seller can pay certain closing costs, thereby decreasing closing costs for the borrower
• Typically lower monthly interest rates compared to other loans
• You don’t have to be a first time home buyer to qualify

Mortgage rates continue to fluctuate, but recently started to trend downwards as the Federal Reserve works to combat inflation. As of Fall 2024, the national average interest rate for a VA home loan with a 30-year term was 6.66%. Interest rates change from week to week, so it’s important for prospective homebuyers to work with a mortgage lender, as they will be up to date on rate changes and can advise buyers through the process.

Are you ready to apply for a VA home loan in Florida? Contact us and and we’ll start the process together >>

Every state has its own VA Loan restrictions, usually defined by county, and these restrictions cap the amount of money that can be financed by these loans. For Florida VA loans, there is only one county with set limitations, while the rest of the state has its own lending maximum:

• Monroe County: Loan limit of $986,135
• Rest of Florida: Loan limit of $813,635

1. Request a Certificate of Eligibility (COE)To apply for a VA loan in Florida, you first need to get a Certificate of Eligibility from the VA. You can apply three different ways – via mail, through your lender or online. Depending on your qualifying category, you will need different supporting materials for your application, so it’s best to reference the U.S. Department of Veterans Affairs COE application guide.
2. Find a VA-approved lenderAfter you have your COE, you’ll want to find a VA-approved lender to go through the mortgage process with. VA-approved lenders are certified by the VA to originate, hold, service, fund, buy, sell or otherwise transfer a VA loan. Once you have an approved lender, you can go through the pre-approval process to determine how much you can borrow.
3. Complete the loan applicationOnce you’ve found a home, made an offer and had it accepted, you then must complete all the VA loan application forms for Florida. You’ll need to provide copies of multiple financial documents, including credit scores and income information. After the application is complete, a VA-approved appraiser will appraise the home to make sure it is worth how much you’re getting the loan for.
4. Close on your home After all the home purchasing processes have been completed – the signing of a purchase and sale agreement, home inspection, appraisal, lawyer review and more, you can close on your home.

Home buying can be stressful no matter which type of mortgage you are utilizing. While you’re going through the home buying process, keep these tips in mind to best maximize your VA loan benefits in Florida.

• Shop around for lenders – you will have options when it comes to choosing a VA-approved lender. It’s in your best interest to shop around for lenders, as different mortgage lenders may offer slightly different interest rates.
• Try to improve your credit score – your credit score is a major determinant of not only how much you’ll be approved to borrow for your Florida VA loan, it will also impact the interest rate you get. Try to improve your credit score by paying down debt and improving your credit utilization rate.
• Use your benefits more than once – Borrows can utilize the VA loan more than once in their lifetime, sometimes even qualifying to hold two VA loans at once. While they can only be used to purchase primary residences, be sure to do your homework in terms of your entitlement and loan qualifications to maximize your VA loan benefits in Florida.

Q: What is a VA Loan?

A: VA loans are fully-backed mortgages from the U.S. Department of Veterans Affairs that typically have more favorable interest rates and conditions. These loans were designed by the VA to make the home buying process easier and more affordable for qualifying service veterans.

Q: Who qualifies for a VA Loan?

A: There are specific parameters when it comes to length and time of service that make someone eligible for a VA loan. More generally speaking, someone might qualify for a VA loan if they are an active-duty service member, a prior service veteran, a member of the national guard or reserves or are the spouse of an injured or deceased service member.

Q: What’s the maximum amount you can borrow with a VA loan in Florida?

A: Only one county in Florida has its own separate VA loan cap – Monroe County, which limits VA loans to $986,135. The rest of Florida has a VA loan limit of $813,635.

Are you considering applying for a VA loan in Florida? Then you need a trusted partner to walk you through this process. Our team has 150 years of combined experience helping service members and veterans apply for and get qualified for VA home loans through a variety of private lenders and local banks. Reach out to a VA loan specialist today to get started on your journey to homeownership.