Florida VA Loan Benefits

The VA loan benefits available in Florida go beyond the loan itself. The state adds property tax relief that no other program matches.

The federal VA loan benefits

• No down payment on an eligible property
• No private mortgage insurance, at any loan-to-value, for the life of the loan
• Consistently among the lowest rates of any program
• A funding fee that disabled veterans are exempt from paying
• Limits on which closing costs a veteran may be charged
• Reusable entitlement, so this is not a once-only benefit

No loan limit if you have full entitlement

Many veterans still believe the VA caps what they can borrow. That changed in 2020.

If you hold full entitlement, meaning you have never used it or have restored it after selling, the VA no longer applies a county loan limit to your guaranty. You can buy above the conforming figure with no down payment, subject only to what the lender will approve and what you can repay. Limits still apply where entitlement is partially in use, such as when you kept a previous VA-financed home.

Therefore ask your lender to confirm your entitlement status before assuming a price ceiling. Veterans in higher-cost Florida counties frequently qualify for far more than they expect. You can check the current rules at VA.gov.

What Florida adds on top

This is where Florida separates itself, and the disabled veteran provisions are substantial.

• Total exemption. A veteran with a service-connected total and permanent disability may qualify for a full exemption from property tax on a homesteaded property. On a $2,500 annual bill that is $2,500 a year, every year.
• Partial exemption. Veterans with a service-connected disability rated at 10% or more may qualify for an additional $5,000 exemption.
• Age 65 combat-related discount. Veterans aged 65 and over with a combat-related disability may receive a percentage discount on the tax bill matching their disability rating.
• Surviving spouses. Several of these carry over, subject to conditions.
• Standard homestead. The ordinary Florida homestead exemption applies as well, alongside the Save Our Homes cap.

You claim all of these through your county property appraiser, and you have to file. Nobody applies them automatically, and the deadline is 1 March.

Why the funding fee exemption matters more than it sounds

The VA funding fee is a percentage of the loan, financed into the balance. On a $400,000 purchase with no down payment it runs into five figures for a first-time user. A veteran receiving VA disability compensation is exempt from it entirely, which removes that amount from the loan.

Since eligibility depends on your award status at closing, tell your lender early if a claim is pending. If your rating is granted after closing, you may be able to claim a refund of the fee, though the process is far easier before.

See also VA loans in Florida, VA cash-out refinance and the VA IRRRL.

Sources: US Department of Veterans Affairs home loan guaranty rules, and Chapter 196, Florida Statutes, covering veteran and disabled veteran property tax exemptions. Eligibility conditions and amounts change; confirm with the VA and your county property appraiser before relying on any figure here.