VA Loans in Florida

A loans are mortgages guaranteed by the U.S. Department of Veterans Affairs (VA) that helps eligible service members, veterans, and surviving spouses buy homes with minimal cash down. 

As the VA explains, these loans offer a home loan guarantee benefit to help eligible borrowers “buy, build, repair, retain, or adapt a home”. In practice, a VA loan typically requires no down payment, no private mortgage insurance (PMI), and offers competitive interest rates. 

In Florida’s high-price market, these features make homeownership far more accessible for veterans and military families than conventional mortgages.

Who Qualifies for a VA Loan?

VA loans are specifically for military-related borrowers. In general, you qualify if you are one of the following:

• Veteran – You served on active duty and received a discharge other than dishonorable.
• Active-duty service member – Currently serving, typically after 90 days.
• National Guard or Reserve member – With at least 90 days of active-duty service (or 6 years service in Selected Reserve/Guard).
• Eligible surviving spouse – Unremarried spouse of a veteran who died on active duty or from a service-related disability.

You must also obtain a Certificate of Eligibility (COE) from the VA, which documents your qualifying service. 

Other standard mortgage criteria apply: you need satisfactory credit, sufficient income to cover the loan, and the house must be your primary residence. (The VA does not set a strict credit-score cutoff, but most lenders look for scores around 620+.)

Key Features of VA Loans

VA loans have several structural features that set them apart from conventional mortgages. The main points include:

• No Down Payment (100% Financing) – Qualified VA borrowers can finance 100% of the home’s value (up to entitlement limits). This eliminates the typical 3–20% down payment required by other loans. (Lenders may require some funds if your loan exceeds your remaining VA entitlement, but the VA itself imposes no minimum down payment)
• No PMI (Private Mortgage Insurance) – Unlike FHA or conventional loans, VA loans do not charge monthly mortgage insurance, even with 0% down. This can save borrowers hundreds of dollars per month.
• Competitive Interest Rates – VA loans tend to have interest rates at or below those of conventional and FHA loans. One analysis found VA rates were on average about 0.244% lower than FHA rates in 2024. Over a 30-year loan this difference can save tens of thousands of dollars.
• Lenient Credit and DTI – VA loans allow more flexible credit profiles. The VA itself sets no minimum score and lenders often approve veterans with lower scores than for conventional loans. VA also permits higher debt-to-income (DTI) ratios; the VA doesn’t set a hard DTI cap, though ratios above ~41% trigger extra review].
• Reusable Benefit – The VA home loan is a lifetime benefit. You can use it multiple times, provided you have remaining entitlement.. For example, you might sell one VA-purchased home and buy another, or have multiple VA refinances.
• Loan Assumability – VA loans are assumable by future buyers (with lender/VA approval), which can be a selling point if rates rise.

Funding Fees and Closing Costs

One trade-off is the VA funding fee, a one-time charge paid at closing to support the VA program. The fee (ranging roughly 0.5% to 3.3% of the loan) depends on factors like your down payment and whether it’s your first VA loan. 

For example, under current rules (effective April 2023) a first-time VA homebuyer with 0% down pays 2.15% of the loan amount as a funding fee], while a repeat buyer would pay 3.3%. (Higher down payments reduce the fee – e.g. 1.5% if 5% down.) 

Importantly, disabled veterans and surviving spouses are exempt from the funding fee. You can either pay the fee in cash or roll it into the loan balance (with interest).

Aside from the funding fee, closing costs on a VA loan are similar to other mortgages. Buyers can negotiate with sellers on who pays certain fees, and VA limits some closing costs the veteran can be charged.

VA Loan Limits and Entitlement

One recent change is that VA loan limits have essentially been restored. For veterans with full entitlement, the VA imposes no cap on loan size beyond what your lender will approve. 

As the VA explains, if your COE shows “full entitlement,” “you don’t have a loan limit (as long as you can afford the loan amount and the property appraisal supports the purchase price of the home)”. In practical terms, this means a qualified veteran can finance any home value (subject to lender approval) without a down payment.

For borrowers with partial entitlement (because they have an existing VA loan or defaulted on one), the VA does follow standard conforming loan limits. In 2025 the standard limit is about $806,500 for most U.S. counties (up from $766,550 in 2024).

 In high-cost areas, the limit is higher (up to $1,209,750 for a one-unit home). In Florida, these higher limits may apply in some metro counties. If you have reduced entitlement and need a loan above the limit, you would need to put down 25% of the excess amount.

Comparing VA Loans to Other Mortgages

VA Loans in the Florida Market

Florida is a veteran-heavy and high-cost market, so VA loans can be especially valuable here. Florida has roughly 1.43 million veterans (the third-largest veteran population in the nation), plus tens of thousands of active-duty service members stationed at bases from Jacksonville to Tampa. 

At the same time, home prices in Florida are well above the national median. 

For example, Redfin reports that Florida’s median home sale price was about $404,100 in July 2025 (Zillow gives an average home value around $382,000 mid-2025). With prices like these, a typical 20% down payment would be on the order of $80,000 or more – a major barrier for many buyers. 

VA loans remove that barrier. By financing 100% of the purchase, veterans and military families in Florida can buy homes that might otherwise be out of reach.

• Veteran-Friendly Communities: Many Florida counties offer additional benefits to veterans (e.g. property tax exemptions). VA loans pair well with state resources.
• Retirement and Climate: Florida’s lack of state income tax and warm climate attract many retiring veterans. A VA loan lets an older vet move to Florida and turn retirement savings (e.g. 401(k)) into a mortgage, even with limited monthly income.
• Housing Supply: While Florida’s inventory levels vary, VA borrowers often compete well since they bring strong financing (no financing contingency needed). The more lenient VA qualification standards also help first-time and moderate-income veteran buyers.

In short, for Florida’s large veteran population and high home prices, VA loans maximize buying power. They allow Florida veterans to own homes without waiting years to save a down payment, a clear advantage in today’s market.

Pros and Cons of VA Loans

Here are key advantages and drawbacks of VA financing (as experts note, “VA loans offer no down payment, no PMI, and low rates):

Pros:

• 0% Down Payment: Borrow up to 100% of the home value.
• No PMI: VA does not charge private mortgage insurance.
• Competitive Rates: VA loans typically have interest rates at or below market.
• Flexible Credit/DTI: VA itself has no credit-score floor and allows higher debt ratios than many conventional loans.
• Reusable Benefit: You can use your VA loan benefit multiple times (lifetime use).
• No Prepayment Penalty: Pay off early at any time with no penalty.
• Assumability: Future buyers (veterans) can assume your VA loan under certain conditions.

Cons:

• Funding Fee: A one-time fee (1.25%–3.3% or more) applies; this can be substantial, especially on repeat loans.
• Primary Residence Only: Must occupy the home; cannot use VA for investment/vacation properties.
• Stricter Appraisal Standards: VA appraisals enforce safety and condition requirements. Homes with defects may need repairs before closing, which can delay the process.
• Perception Issues: Some sellers or agents mistakenly think VA deals are difficult. In reality, with education, these concerns are usually dispelled.
• Closing Time: The VA loan process (especially appraisal) can take a bit longer than streamlined conventional loans.

Overall, most eligible borrowers find VA’s benefits far outweigh the downsides. As one VA lender summary put it, “for most Veterans, the advantages outweigh the drawbacks compared to conventional options”.

Tips for Qualifying for a VA Loan in Florida

Veterans in Florida can take some extra steps to maximize their chances:

• Get Your COE Early. Apply for your Certificate of Eligibility online or through your lender before shopping. Lenders need this to approve your loan.
• Know Your Entitlement. Check your COE and VA statement to see if you have full or remaining entitlement. If you’ve used a VA loan before, you might need a small down payment for a higher-priced home.
• Work on Credit. Aim for a credit score of at least ~620, though higher is better. Pay down debts and ensure all accounts are current. VA loans can allow higher DTI, but lower debt still strengthens your application.
• Budget for Costs. Even with no down payment, plan for closing costs (typically 2–5% of the loan). Florida veterans should also budget extra for homeowners insurance (hurricane coverage can be costly). Some closing costs can be paid by the seller or rolled into the loan.
• Attend a VA Counseling or First-Time Homebuyer Class. The VA and some Florida agencies offer free homebuyer education. This prepares you for the process and highlights any state-specific grants.
• Choose a VA-Savvy Lender. Use a lender (like Truss) experienced with VA loans in Florida. They will ensure all VA paperwork is correct and can suggest local loan programs or down-payment assistance if available.

By preparing these elements ahead of time, you’ll navigate Florida’s market more smoothly and lock in the best VA loan terms.

Why Work with Truss Financial Group?

At Truss Financial Group, we specialize in VA loans and understand the unique needs of Florida’s veterans and military families. Our team will guide you through every step. As one recent Truss client put it, “Marshall got me preapproved quickly… and was helpful in finding the best options and rates.” 

Another noted the process was “completely straightforward” with our help. We stay current on VA rules (like the 2023 funding fee changes and 2025 loan limits) and Florida housing trends, so we can find you the most affordable solution. 

Our VA loan specialists (like Shirley Mueller, a VA lending expert in Florida) have helped thousands of veterans secure financing. In short, we make VA homebuying easy. Let us put our experience to work for you, from obtaining your COE to closing on your dream home.

Frequently Asked Questions

Do I need a down payment for a VA loan?

In most cases, no down payment is needed. VA loans allow 100% financing if you have full entitlement. A small down payment is only required if your purchase price exceeds your remaining VA entitlement (i.e. if you’ve already used part of the benefit).

Are VA loans only for first-time homebuyers?

Not at all. You can use the VA loan benefit multiple times over your lifetime. You just need sufficient entitlement. Many veterans use VA loans for second or third homes, or after moving to a new base.

What changed in 2025 for VA loans?

There haven’t been major new barriers in 2025, but a few updates matter: The county loan limits were increased (standard limit $806,500 in 2025). Importantly, the VA’s 2023 funding fee reductions remain in effect (e.g. first-use funding fee is 2.15% with 0–4.99% down). No new eligibility categories were added; service requirements and VA’s general rules are the same. As always, check the official VA site or consult your lender for any incremental updates.

Is there a Florida VA Homebuyer program or other assistance?

Using a VA loan already gives you advantages: no mortgage insurance and no down payment are significant savings compared to other homebuyer programs.

What if I have a service-connected disability?

Disabled veterans often get even better terms. Those receiving VA disability compensation (or Purple Heart recipients) do not pay the VA funding fee. Many lenders also offer additional fee waivers or special rate discounts for disabled vets.

For more questions or to get started, our VA loan experts at Truss Financial Group are here to help. Call us or fill out our online application today, and turn your Florida homeownership dream into reality.