Buying a home can feel different when you are relocating after military service, using your VA home loan benefit, purchasing new construction, or buying your first home.
Here are answers to some of the most common questions from buyers considering Riverview, Florida and the surrounding South Shore Tampa Bay area.
1. Can a disabled veteran buy a home in Riverview, Florida with a VA loan and no down payment?
Yes, an eligible veteran may be able to purchase a home in Riverview using a VA backed home loan with no down payment, provided the purchase price does not exceed the property’s appraised value and the borrower meets the lender’s credit, income and other underwriting requirements.
A VA loan can be used for many types of primary residences, including qualifying single family homes, certain condominiums and new construction homes. You will also need a valid Certificate of Eligibility, commonly called a COE.
No down payment does not mean no money will ever be needed at closing. Buyers should still plan for items such as inspections, insurance, prepaid expenses and closing costs unless some of those costs are covered through negotiated seller or builder credits.
2. Do disabled veterans have to pay the VA funding fee when buying a home?
Many veterans receiving VA compensation for a service connected disability are exempt from the VA funding fee.
The VA also provides funding fee exemptions in several other circumstances, including certain veterans who are eligible for service connected disability compensation but receive retirement or active duty pay instead. Your Certificate of Eligibility may indicate whether you are exempt.
This can make a meaningful difference in the total cost of your VA loan, so funding fee status is something that is encouraged for veteran buyers to verify with their VA approved lender early in the buying process.
3. Does a 100 percent disabled veteran pay property taxes in Florida?
A qualifying Florida veteran who was honorably discharged and has a service connected total and permanent disability may be eligible for a total exemption from ad valorem property taxes on a home that the veteran owns and uses as a homestead.
Eligibility is not based simply on someone informally describing themselves as “100 percent disabled.” The specific VA disability classification, residency, ownership, homestead requirements and supporting documentation matter. Applications are handled by the county property appraiser.
For a home in Riverview, that means the buyer should verify eligibility with the Hillsborough County Property Appraiser rather than assuming the exemption will automatically appear after closing.
Recommend that veteran buyers understand this benefit before deciding how much home they can comfortably afford, while still having their lender qualify them using the appropriate taxes and insurance assumptions.
4. Can I use my VA disability income to qualify for a mortgage?
VA disability compensation may be considered as qualifying income when properly documented and evaluated by the lender.
Because qualifying VA disability compensation is generally nontaxable, VA underwriting guidance also allows verified tax free income to be adjusted, or “grossed up,” for certain debt to income calculations. The final treatment of income is determined by the lender and the specific loan file.
Strongly recommend working with a lender who regularly handles VA borrowers rather than assuming every lender approaches a veteran’s income profile the same way.
Your real estate agent and lender should also communicate early so your home search is based on a realistic monthly housing budget, not simply a maximum preapproval amount.
5. Is Riverview, Florida a good place for a veteran or military family relocating to the Tampa area?
Riverview is one of the communities buyers frequently consider when relocating to the Tampa Bay area because it offers a mix of established neighborhoods, master planned communities, newer construction and different property styles.
What makes a particular Riverview home appropriate depends on the buyer’s individual priorities. For a veteran, military retiree or government contractor, those priorities may include commuting requirements, lot size, accessibility, HOA restrictions, CDD fees, proximity to services and whether the buyer prefers community amenities or more separation between neighbors.
Rather than labeling one neighborhood as “best,” buyers should compare objective factors so they can determine which community fits their lifestyle, housing needs and budget.
6. What is the difference between an HOA and a CDD in Riverview, Florida?
An HOA, or homeowners association, generally collects assessments to operate and maintain the community and enforce its governing documents.
A CDD, or Community Development District, is different. It is a governmental entity that may finance and maintain certain community infrastructure and improvements. Depending on the property, CDD assessments may appear on the property tax bill and can affect the buyer’s total monthly housing cost.
Some Riverview and Tampa Bay area new construction communities may have an HOA, a CDD, both or neither.
7. How much are closing costs for a VA buyer purchasing a home in Riverview?
There is no universal closing cost amount because costs vary according to the loan, lender, property, insurance, taxes, title expenses and negotiated contract terms.
VA rules permit sellers and builders to provide certain credits toward buyer closing costs. The VA also distinguishes normal closing cost credits from seller concessions and limits qualifying seller concessions to no more than 4 percent of the home’s reasonable value.
This becomes particularly important when comparing a resale home with new construction.
A builder may advertise a substantial incentive, but the buyer should understand:
What the incentive actually covers
Whether use of the builder’s preferred lender is required
The offered interest rate
Whether the credit is being used for closing costs, rate reduction or another purpose
How the final payment compares with competing financing options
8. What should a first time homebuyer or disabled veteran do before starting a home search in Riverview?
Start with strategy before starting with listings.
Before touring homes recommend understanding your VA eligibility if applicable, financing options, comfortable monthly payment, disability related housing needs, insurance expectations, property tax situation and the type of lifestyle you want from your community.
Then we can compare homes based on the complete picture.
For a veteran or first time buyer, that could mean evaluating:
New construction versus resale
VA financing versus other available loan programs
HOA and CDD expenses
Potential veteran property tax benefits
Home accessibility and future needs
Commute requirements
Lot size and privacy
Community amenities
Builder incentives
Insurance and total monthly housing costs
About the Author
Ollie Green is the Broker/Owner of Fleur De Lis Luxe Realty, a retired 22-year U.S. Army veteran, and a real estate professional who began in 2018. She specializes in helping first-time buyers and relocation clients purchase single-family and new-construction homes in Riverview and SouthShore Tampa.