Homeownership is the dream of many Americans, but did you know that Military Service members, their families and Veterans are among the highest group of homeowners?
If you’re a Military Service member or Veteran, Home Buying is well within your reach! You have access to many home-buying benefits, and protections, making this one of the most powerful home loan programs on the market. Let’s review the program:
VA Loan Program
Since the beginning of the VA Loan Program, over 21 million loans for Veterans and active duty Military Members and their families. Here are some of the highlights of the program:
VA loans feature many benefits that help make home buying possible, including the following:
- No down payment requirement
- No mortgage insurance
- Lower average interest rates
- Limits on closing costs
- More lenient credit requirements
* Individuals not qualifying for a conventional home loan have been flocking to VA home loans!
Typically, veterans and active-duty service members are eligible for a VA home loan if they served in the following capacity:
- 90 consecutive days on active duty during wartime
- 181 consecutive days on active duty during peacetime
- 6 or more years in the National Guard or Reserves
Occupancy & power of attorney
The VA Loan program is focused on getting buyers into homes they’ll be living in full time. However, the program does make exceptions for some active-duty service members and veterans:
For example, a spouse or children may be able to fulfill the occupancy requirement on behalf of a VA buyer.
A VA buyer who is deployed or otherwise unable to manage the loan process can typically assign a power of attorney to a spouse or family member to manage the loan process and sign documents.
If you find yourself needing to assert the Power of Attorney, there are 2 types from which to choose; General & Specific, all depending on what parts of the loan document the actual buyer can sign.
The occupancy and power of attorney options mean an eligible VA buyer’s spouse and children could buy a home during a deployment or unaccompanied assignment, helping alleviate the emotional toll of multiple moves on military families.
Basic allowance for housing
Did you know that many active-duty military members who receive a monthly housing allowance can use this money to qualify for a home loan? Mortgage Lenders can count Basic Allowance for Housing (BAH) as effective income. This makes for a much easier transition from renting to owning your own home.
For help with equating your BAH and qualifying income into a home loan equation, give the Mary McTernan team a call.
Being an active-duty service member, you can face unique financial challenges; deployment and changes of station can put undue emotional and financial strain on the family. For this reason, Servicemembers Civil Relief Act (SCRA) can provide military personnel financial protection involving interest rates, income tax payments, foreclosure, eviction and more!
Veterans Affairs also offers foreclosure avoidance protection assistance for homeowners. Their team of experts work with lenders on your behalf, when struggling homeownership difficulties occur.