Buying a Home for Veterans
Buying a home is an expensive proposition for anyone, but for veterans on a limited budget, this type of purchase can seem overwhelming. Fortunately, there are ways in which veterans can get assistance when buying a new home. To find out more about how the VA loan program can benefit you, contact us.
VA Home Loan Benefits
For current military personnel and for veterans, the best way to purchase a new home is often with a VA loan. Started in 1944 through the GI Bill of Rights, the VA home loan was created for veterans to acquire a federally guaranteed loan without a down payment.
For people who qualify, the benefits of the VA home loan are many. Besides having no down payment requirement, there is no mortgage insurance required, which saves veterans a substantial amount each month. In addition, the VA regulates which closing costs the veteran can be charged.
In today’s market, there’s simply no loan that compares with the value of a VA loan.
How Veterans May Use the Loan
Veterans are able to use the VA loan for the purchase of a single family home, VA approved townhouse or condo, or even a mobile home that meets VA’s requirements. It can also be used to remodel or improve a home or to install energy efficiency improvements.
It is important for veterans to know that they should look for a home with few deficiencies. The VA has minimum property requirements in place so that the veteran is protected from buying a home with a lot of problems. However, this can make approval times longer, if the property needs to be repaired prior to the purchase closing.
Who Is Eligible?
Eligibility for a VA Home Loan depends on a number of factors. The person must be able to show active duty service from a branch of the military. They must have served for either 90 days with some of that time during wartime, or for 181 days or more during peacetime. They must have been given an honorable discharge as well. These are the basic requirements. It is possible, as well, for active personnel and for those serving in the reserves who want to purchase a home with a VA loan to do so. All interested parties should meet with a VA home loan specialist to learn about the stipulations for applying under their specific circumstances. It’s important to note that surviving spouses of service members can also be eligible under certain circumstances.
Finally, homebuyers should purchase a home that is within their budget. Veterans too should keep their budget in mind when committing to a monthly payment. If you’re ready to proceed with your plans to own a home, you can contact us now.