Last updated: September 2025
Quick Answer
PCS’ing to Florida with your VA loan? While the state offers key benefits like no income tax and veteran exemptions, you should plan for high insurance costs, flood zone concerns, and hurricane risks—especially when buying near the coast.
What to expect when using a VA loan in Florida
Florida is one of the most popular PCS destinations in the U.S., thanks to its military bases, warm climate, and tax-friendly policies. Whether you’re relocating to Naval StationMayport, MacDill AFB, Eglin AFB, or NAS Pensacola, a VA loan can help you buy a home with:
- Zero down payment
- No PMI
- Flexible credit standards
- Competitive interest rates
Florida’s climate and insurance rules make VA homebuying more complex than in other states. You’ll need to navigate flood zones, hurricane insurance, and property tax variances. You must also ensure that your home meets the VA’s minimum property requirements (MPRs).
Florida’s no income tax and veteran-friendly perks
Let’s start with the good news. Florida is consistently ranked one of the most veteran-friendly states in the country. Here’s why:
- No state income tax: Your military pay, retirement income, or VA disability compensation isn’t taxed
- Homestead exemption: Florida residents can reduce their taxable home value by up to $50,000, and veterans with a 10%+ disability rating can qualify for additional exemptions
- 100% property tax exemption: If you’re a veteran with a 100% permanent and total VA disability, Florida exempts you from all property taxes on your primary residence
- No vehicle tax for disabled veterans: Certain service-connected disabled veterans may receive tax relief when registering a vehicle
These benefits can add up to thousands of dollars in annual savings, making Florida a smart financial move for many military buyers.
Homeowners insurance in Florida: Why it matters for VA buyers
Florida’s homeowners insurance market is among the most expensive in the country, and it directly affects your VA loan eligibility.
Here’s why it matters:
- Lenders calculate your debt-to-income (DTI) ratio using your full housing payment, including insurance and taxes
- High insurance premiums could push your DTI above VA thresholds, making it harder to qualify or reducing the home you can afford
- Premiums vary significantly by location, proximity to the coast, roof condition, and flood risk
Typical annual insurance costs in 2025:
| Location Type | Estimated Annual Premium |
|---|---|
| Inland Florida | $2,500 – $3,500 |
| Coastal Florida | $4,500 – $6,500+ |
| Flood Zone Area | Add $700 – $1,500 (NFIP) |
The closer you buy to the water, or the older the home, the more you’ll pay.
Newer homes with hurricane-rated features (like impact windows or metal roofing) often qualify for discounts.
Flood and hurricane risks: What VA buyers must know
Flood insurance isn’t included in a standard homeowners policy—something many PCS buyers miss. If the home is in a FEMA flood zone, your lender will require flood insurance before approving the VA loan.
Key facts:
- VA does not prohibit buying in flood zones, but insurance must be in place before closing
- Flood insurance can be purchased through the National Flood Insurance Program (NFIP) or private insurers, depending on coverage needs
- VA requires proof of adequate coverage before issuing a loan guarantee
- Hurricanes can delay closings if insurance underwriters pause new policies due to an active storm threat
To avoid delays or surprises:
- Ask your real estate agent whether the home is in a flood zone
- Request a copy of the elevation certificate, if available
- Get insurance quotes before making an offer, especially in coastal or low-lying areas
How to use BAH and income effectively in Florida
Your Basic Allowance for Housing (BAH) is a critical factor in how much home you can afford. Florida has 21 military bases, and BAH rates vary widely by ZIP code.
Here’s an example:
| Duty Station | E-5 with Dependents (Monthly BAH) |
|---|---|
| NAS Pensacola | $2,172 |
| MacDill AFB (Tampa) | $2,493 |
| Eglin AFB | $2,148 |
| NAS Jacksonville | $2,226 |
Because of Florida’s high insurance premiums, a BAH of $2,200 might only support a mortgage in the $225,000 to $250,000 range, depending on taxes and insurance costs.
When you get preapproved, your VA lender will:
- Factor in BAH as monthly income
- Estimate property taxes and insurance premiums
- Calculate residual income, which the VA requires after debts and housing expenses
Florida VA loan preapproval: What you need
If you’re planning a PCS move to Florida, get preapproved as early as 60 to 90 days before your report date. This helps you compete in Florida’s active housing market and ensures your loan aligns with local insurance and tax expectations.
To get preapproved, gather:
- Military orders or PCS documentation
- Certificate of Eligibility (COE)
- Recent LES or pay stubs
- Bank statements
- Any documentation related to disability ratings (if applicable for funding fee exemptions)
PCS tips for Florida military homebuyers
PCS moves are stressful. Buying in Florida adds more complexity due to storms, insurance, and flood zones.
Here are some strategies to make your Florida homebuying experience smoother:
- Start with insurance quotes: Price out insurance early, especially if the home is older or near the coast
- Buy newer construction when possible: Newer homes tend to have wind mitigation features and lower premiums
- Avoid flood zones if possible: Inland properties may cost less and require no flood insurance
- Work with a VA-experienced lender: Local knowledge matters when navigating Florida’s property rules
- Close early if possible: Hurricanes can delay closings—closing early reduces risk
FAQ: Florida VA loans
Yes. Florida offers no income tax, homestead exemptions, and many veteran benefits. But buyers must be cautious of high insurance costs.
Only if the home is in a FEMA-designated flood zone. Your lender will require it before closing.
It varies by location but ranges from $2,500 to over $6,000 annually. Coastal areas and older homes tend to be more expensive.
Yes. VA lenders accept BAH as qualifying income, which is especially helpful in high-cost areas.
VA loans don’t cover hurricane damage directly—but your hazard insurance does. You’ll need coverage in place to finalize the transaction.
Planning a PCS to Florida? Prepare before you buy
Florida offers an unmatched lifestyle, tax advantages, and veteran programs. But high insurance costs and storm risks require advance planning.
Whether you're buying in Tampa, Jacksonville, Pensacola, or elsewhere, understanding how these factors affect your VA loan can help you make a more informed purchase.
Planning a PCS to Florida? Get preapproved early to lock in your housing budget.
