Friday, November 25, 2022

Home Buying Programs For Veterans

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Are You Eligible For A Va Mortgage

Top 5 Benefits of the VA Home Loan Program

Your VA eligibility is based on continuous active service of servicemembers and veterans. Also, may be available to spouses of vets who died on active duty or MIA/POW. The VA provides more detail for eligibility here.

VA entitlement is documented in your Certificate of Eligibility . The guaranty is limited to 25% lesser of purchase price or established reasonable value and vets may generally purchase home up to 4 times entitlement with no down payment. Annual loan limits are set by county and most counties are set at $510,400. Remember, some down payment assistance programs in Arizona limit the loan amount even if VA will finance more.

Some Programs Offer Not Assistance But Rather The Home Loan Itself

A smaller number of states offer veterans a home loan instead of simply offering to help pay for loan-based expenses.

The State of Oregon has one such program described on the official site as separate and distinct from the federal VA Home Loan Guaranty and has lent Oregonians approximately $8 billion of low-interest home loans to more than 334,000 veterans.

This Oregon state veterans home loan benefit is a conventional loan available for owner-occupied single family homes. You can purchase a home under this Oregon program if you qualify with military service even if you do not live in the state the only requirement is that the home purchased with this Oregon state veterans home loan option be located within state lines and is occupied by the borrower within a reasonable amount of time after closing.

Veterans Mortgage Assistance Uses

Even if down payment is not necessary, there are some huge advantages for receiving up to $10,000 at closing. Uses include

  • Reducing principal

Think of these advantages when buying a home. Often VA buyers need or at least prefer seller paid closing costs. Of course, the advantage is the buyer brings little to no money to closing. But, the downside of seller paid costs is that it drives up the price and loan amount. Conversely, Veteran down payment assistance gives a competitive advantage in buying a home. Seller paid costs and concessions are not needed. Additionally, the VA appraisal does not have to meet a higher price that includes these costs!

Funds are available on a first come, first serve basis. Through the FHLBank Atlantas Affordable Housing Program, we have $1,000,000 available annually to fund assistance for first time home buyers, community partners, foreclosure recovery, rebuild and restore, Veterans, and returning Veterans.

What if the seller does pay the closing costs and the loan does not require a down payment? Fortunately, the buyer may use the mortgage assistance to pay the VA funding fee. If there are still funds available, then it may be paid towards reducing the first mortgage balance. Therefore a lower loan amount. Advantages mean lower housing payment and lesser loan balance. Thus, selling the home down the road is easier with increased equity because of a lower balance.

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Basic Allowance For Housing

Many active-duty military members who receive a monthly housing allowance are surprised to learn that they can use this money to qualify for a home loan. Lenders can count Basic Allowance for Housing as effective income. That can help service members make the leap from renting to owning, especially in higher-cost areas.

BAH is based on several factors, including the location of your duty station, your pay grade, and your family size. The housing allowance can change on an annual basis. To calculate your BAH, refer to the BAH calculator on the Defense Departments website.

Mortgage With A Disability: Additional Resources

There are great home buying programs for Veterans! Give me a call so I ...

There are many state and local resources for home buying help. Among those are:

  • The National Council of State Housing Agencies
  • HUDs Local Homebuying Programs

Also, if you need it, you can find down payment assistance specifically for disabled home buyers.

Before you apply for any kind of mortgage, try to pay down your credit cards and avoid taking out new loans. This should help you meet program and lender credit score rules.

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Housing Help For Older Veterans

Find programs to help older veterans with a wide range of housing needs. This includes in-home care, assisted living, and retirement homes for veterans.

Another option for some military retirees and other veterans is the Armed Forces Retirement Home . The AFRH has two locations: Washington, DC, and Gulfport, MS. Both offer recreation and wellness services including assisted living and skilled care.

$10000 Veterans Mortgage Assistance

In order to use $10,000 in Veterans assistance, the home buyer must currently serve or has served in an overseas military intervention environment for any branch of the U.S. military, their spouse, or surviving spouse. For a list of the qualifying overseas military intervention environments, click on the button below.

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Use The Right Real Estate Agent

If you plan to take advantage of Veteran home buying programs, choose a realtor who is experienced with Veterans. The differences between VA loans and other mortgage options can be vast, so working with a professional who fully understands the buying process is one of the top home buying tips for Veterans.

Consider searching through online directories to find Veteran-friendly agents or speaking with other Veterans who have made successful purchases in your housing market. If you feel that your agent cant properly guide you through the process, dont be afraid to make a switch at any time.

Buying a house as a Veteran can be a major decision, especially for those newly out of the service. However, the right information and preparation can make the process significantly easier. From reviewing all of your lending options to understanding closing costs, these seven Veteran home buying tips can help make the process of homeownership as exciting and seamless as possible.

Using Social Security Benefits

HUD-VASH: Providing Safe Housing, Quality Health Care for Veterans

If a parent or legal guardian receives Social Security disability benefits on behalf of their child or dependent, this income can typically be used to qualify for the mortgage.

In order for the disability income to be eligible, the parent or guardian needs to show an SSA award letter, proof of current receipt, and proof that the income will continue for at least three years.

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Explore All Your Home Buying Options

Mortgage lenders can connect you with loan programs that help people with disabilities become homeowners. Shop with several competing lenders to find the best program and most competitive interest rate for you.

In addition, be sure to ask your loan officer, real estate agent, or Realtor about financial assistance programs available in your area. There are many assistance programs for disabled home buyers and especially for low-income families or individuals. These programs can make buying your own home more affordable than many people expect.

Other Types Of Help If Youre Homeless

Visit Benefits.gov to find out if youre eligible and how to apply for other types of help. This may include financial assistance, transportation, food, counseling, and more.

If you dont have medical insurance, you can use HRSA health centers. They give checkups, treatment when youre sick, pregnancy care, and immunizations for your children.

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Hire Employees For Your Technical And Manpower Needs

When it comes to starting a transitional housing program for veterans, you will need a public address system, first aid kits and other related equipment that will aid you in carrying out your job. In setting up a small office for your facility, you will need a computer, printer, home healthcare software, telephones, pager, photocopier, scanner, fax machine, first aid kit, gloves and uniform.

When it comes to choosing between renting and leasing a facility for your transitional housing program, the size of the facility you want to own, and your entire budget for the business should influence your choice. Besides, you will need a facility that is in serene environment, a facility that is big enough to accommodate the number of residents and staff working for you.

As regards the number of employees you are expected to kick start the transitional housing program for veterans with, you would need to consider your finance before making the decision. Averagely, when it comes to starting a standard transitional housing program for veterans on a large scale, you would need the services of the following professionals

Chief Operating Officer , Fund Raisers, Accountant, Program Coordinator, Home Administrator , Front Desk Officer, Cooks, Security Guards and Cleaners.

Over and above, you would need a minimum of 10 to 15 key staff members to effectively run a medium scale but standard transitional housing program for veterans and these key roles can be occupied by volunteers.

Va Mortgage Pima Tucson Homebuyers Solution

Veteran Programs for Home Buying

The Pima Tucson Homebuyers Solution can be used with an Arizona VA mortgage and has benefits are similar to those offered by the programs listed above and are offered in all of Pima County including the City of Tucson.

Program Highlights:

  • Down payment assistance available at 4% of the loan amount.
  • There is no first-time homebuyer requirement.
  • No requirement to pay back the grant. Also, it is not a 2nd mortgage.
  • The money is available and has continuous funding.

How to Qualify:

  • Buy a house anywhere in Pima County, including in the City of Tucson.
  • Minimum FICO score is 640.
  • Income from all borrowers may not exceed $122,100.
  • Qualify for an Arizona FHA loan with a maximum debt-to-income ratio of 45%.
  • Take an easy online home buyer education course.

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Some Programs Dont Help Until After The Sale

There are many state-run programs that do not feature help with down payments or home loans themselves, but rather offer tax credits. One good example is the Delaware First-Time Homebuyer Tax Credit which is a tax credit that is good for 35% of the mortgage interest paid at a maximum benefit of $2,000 per year.

Normally, to be considered eligible for the Delaware First-Time Homebuyer Tax Credit, a borrower is required to:

  • Meet an income cap
  • Have a household income below the maximum income limits for the program
  • Occupy the home purchased as the primary residence
  • Not have owned a home in the past three years as your primary residence

The last requirement is waived for those applying with a Qualified Veteran Exemption which must be submitted with the application for this Delaware program.

Conduct Market Research And Feasibility Studies

  • Demographics and Psychographics

The demographic and psychographic composition of those who patronize transitional housing program for veterans are of course veterans. Please note that a veteran is a former member of the Armed Forces of the United States who served on active duty and was discharged under conditions which were other than dishonorable.

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Which Loan Is Best For First

The majority of first-time home buyers use 30-year fixed-rate mortgages backed by Fannie Mae or Freddie Mac to purchase their first home but that doesnt make it the best loan for first-time buyers. Mortgages are not one-size-fits-all. Get pre-approved and let your lender advise you on which mortgage loan is best for you.

Read more of our other first-time home buyer tips.

Get pre-approved for a mortgage today.

Dan Green

Dan Green is a former mortgage loan officer and an industry expert. He’s appeared on NPR and CNBC, and in The Wall Street Journal, Bloomberg, and dozens of local newspapers. Dan has helped millions of first-time home buyers get educated on mortgages, real estate, and personal finance. Have mortgage questions? Ask Dan in the chat.

Get Help With Your Home Purchase

Explore VA Benefits: Overview of home loans and how to apply

Buying your first home can be challenging, especially when it comes to getting approved for a mortgage and coming up with the down payment.

Thankfully, Uncle Sam has first-time home buyer government programs that can make it easier to get into your new home.

Dig deeper and find out about various loan options, state-run mortgage programs, down payment assistance, and other resources available to eligible buyers.

In this article

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Programs To Help Veterans Buy A Home

Editors Note: This blog was originally published in August 2018 and has been revised to reflect industry statistics, trends, and updates.

There are millions of active-duty and retired U.S. military service members, and many require financial assistance to purchase a home. The U.S. Department of Veterans Affairs , state and local governments, and various foundations offer programs helping veterans purchase, refinance, or improve their homes. There are also various loans and grants for eligible active and retired U.S. military members.

As an authorized lender providing government-backed loans, Contour Mortgage can assist with these important processes, associated questions, requirements, and qualifications.

Consult this useful explainer for more information on available loans and grants for qualified U.S. veterans.

Va Grants For Disabled Veterans

The Department of Veteran Affairs offers home loan programs to help disabled veterans with the cost of buying a home, as well as home modification grants to adapt an existing residence to be more accessible.

To qualify for these programs, the veteran must have a service-connected disability, and they must currently live in or be purchasing the home in question.

  • Specially Adapted Housing Grants: The VAs largest grant, which can be used to buy, build, or change your permanent home . This grant is only available to 120 disabled veterans each year
  • Special Housing Adaptation Grants Grants: A lower grant amount than the SAH grant, which can also be used to buy, build, or change your permanent home
  • Temporary Residence Adaption Grants: Intended to help disabled veterans make accessibility upgrades to a family members home theyre living in temporarily. To qualify for a TRA grant, you must be eligible for either an SAH or SHA grant

You can find more information about these programs and apply for a grant on the VA website.

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No Mortgage Insurance For Va Loans

Mortgage insurance is what non-VA borrowers usually have to pay if they dont have a 20 percent down payment. Private mortgage insurance typically takes the form of a payment on closing, along with monthly payments going forward.

Thats no small benefit since mortgage insurance can represent a significant amount of money. For example, FHA home buyers pay over $130 per month on a $200,000 loan for years.

National Call Center For Homeless Veterans Hotline

Home Buying Assistance For Veterans

If youre currently unhoused or at risk of homelessness, the VA maintains the National Call Center for Homeless Veterans. This is a 24/7 resource for veterans and those who know someone in need of help to speak with trained VA counselors about available homelessness programs, health care and other services.

The hotline is 4AID-VET. Thats 424-3838.

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S To Buying Your Home

Once youve found the house you want to buy:

  • Work with your agent to put together and sign a purchase agreement

    Be sure the sales contract includes the VA escape clause or VA option clause. This provides an option to void the contract if the property doesnt appraise for the contract price.Ask your real estate agent for advice on other options for voiding the contract you may want to include, such as if the property fails a home inspection. These options are called contingencies.To learn more, watch this helpful video:Using your VA home loan benefit: working with a Realtor and lender

  • Have the house inspected and appraised

    We strongly recommend that you get an inspection to check for any major defects before you purchase your home. A VA-approved appraiser will also appraise the house to make sure it meets basic property condition requirements , and will provide an opinion of value on the house. Please note that an appraisal isnt the same as an inspection.If the property doesnt appraise at a value thats high enough to get the loan, you have a few options. You can:

  • Request a Reconsideration of Value . You can ask your real estate agent to provide the lender with valid sales data showing the property is worth more than its appraised price. The lender will ask the appraiser to reconsider based on this information.
  • Renegotiate the sales price. Ask the seller to lower the price to match the appraised value.
  • Where Can I Find Government Grants For First Time Home Buyers

    When looking for first time home buyer grants, it is important that you diversify your search strategy. For larger federal programs, you may be able to find information on a government site.

    However, for smaller, more localized efforts, you probably need to contact individual organizations to learn about the benefits they offer. Not every first time home buyer grant program is guaranteed to be advertised online.

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    How To Apply For A Usda Direct Loan

    Unlike USDA Guaranteed loans, private lenders do not offer the USDA Direct Loan. Youll have to apply with your local Rural Development Office.

    Application processing times could be longer and the process could be less convenient. Buyers who can qualify for the USDA Guaranteed loan program should try that first.

    Buyers with moderate incomes who dont qualify for USDAs subsidized program can still access a USDA Rural Housing loan. It has looser guidelines, but still allows zero down payment and offers below-market mortgage rates.

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