Sample ImageFort Pierce, the heart of the Treasure Coast, is located on Florida's southeast Atlantic Coast. With the city’s welcoming community of residents, affordable housing, and breathtaking scenery, it’s not surprising that retirees settle down here.

If you currently serve in the military or are a veteran, you might be qualified to purchase Fort Pierce real estate with no money down. Thanks to the Department of Veterans Affairs' amazing program called a VA home loan, you can enjoy the said benefit.

In this article, we will take a deep look at how this program works and why you should use it to purchase a house in Fort Pierce.

What is a VA Loan?

A Fort Pierce VA home loan is a zero down payment mortgage option available to active service members, veterans, and surviving spouses. Private lenders issue VA home loans, and the United States Department of Veterans Affairs guarantees them. The private lenders also set the income and credit score requirements you have to meet after you verify your military service.

Because the VA guarantees this type of mortgage, they typically refund part of the pending balances when borrowers fail to make their mortgage payments.  

The reason eligible borrowers think buying a home in Fort Pierce with a VA loan is brilliant is their low-interest rates and $0 down payment requirements. VA loans also don’t require private mortgage insurance (PMI), which helps you save cash. 

VA Loan Eligibility in Fort Pierce

VA loan eligibility requirements in Fort Pierce are generally based on the Certificate of Eligibility (COE). Lenders’ minimum income and requirements consider income, DTI ratio, and FICO score. The following are other VA loan requirements you must meet if you want to take out a VA home loan:

  • You served 90 continuous days of active service during wartime

  • You served 181 days of active service during peacetime

  • Service in the National Guard/Reserve for not less than six years

  • You’re the spouse of a service member who passed away while serving or due to a service-related disability.

The eligibility requirements for veterans are different compared to active duty service members. These conditions depend on the discharge type. If your discharge status falls into any of the following categories, you might still qualify for a VA loan:

  • You’re discharged due to the convenience of the government, reduction in force, or hardship.

  • You’re discharged for a service-connected medical connection or disability

  • You’re discharged for early-out and served for at least 21 months two years after enlistment

Advantages of VA Loans

VA loans have many advantages compared to conventional mortgages. Here are VA loans’ biggest benefits:

  • Better rates: Since they’re backed by the government and carry less risk for lenders, VA loans usually have lower rates than conventional loans, particularly for borrowers with credit issues.

  • No down payment required: This is the signature benefit of VA  loans. It can take a couple of years for borrowers to save up cash for the down payment. The ability to purchase with no money down means you don’t have to stockpile for several years to attain homeownership.

  • No PMI: VA loans don’t require PMI. The ability to not pay PMI means you can save 0.1 - 0.2% of your loan amount each year until you reach 20% equity.

Conclusion

So what are you waiting for? Get in touch with one of our loan experts to help you get started on your VA home loan. Work with Element Home Loans of Treasure Coast to buy your dream home in Fort Pierce, Florida.