Today is Veteran’s Day in the United States, a great time to thank a Twin Cities vet and take a look at the home loan options available to the men and women who have served in the military.
The US Department of Veterans Affairs, or VA, offers home loans to veterans, active servicemembers, and eligible surviving spouses through private lenders, including those in the Twin Cities. Veterans can apply for a new mortgage, refinance an existing mortgage, and apply for grants to adapt a current home to accommodate service-related injuries.
VA Purchase Loans
VA purchase loans help veterans purchase a new home and save money. They offer veterans and others who are eligible competitive interest rates, no down payment requirement, and no private mortgage insurance requirement. The VA guarantees a portion of the loan and limits the amount that can be charged for closing costs. There is no penalty for paying off a VA loan early, and the VA also offers help to homeowners who run into difficulty making payments.
In addition to savings at closing and a low interest rate, VA loans offer other benefits. VA loans can be used to finance the purchase of a new home, not just your first one. It is also reuseable, which means that you can use a VA loan to purchase your first home, and then apply for a new VA loan when it’s time to upgrade to a new, larger home.
To be eligible for a VA purchase loan, a veteran or active servicemember must have served a minimum period of time and, if applicable, been discharged in a way other than dishonorable. Surviving spouses must be the widow or widower of a deceased veteran, a veteran missing in action, or a prisoner of war, and not have remarried.
VA Cash-Out Refinance
Current veteran homeowners can take advantage of a VA cash-out refinance. You may choose to do this if you are eligible for a VA loan but currently have a conventional mortgage with a higher rate. VA cash-outs may also be used to take cash out of a home’s equity to pay for renovations, school, or to pay off debt.
SAH Grants
If you have a permanent, total disability from your service in the US military, the VA offers Specially Adapted Housing (SAH) grants for adapting your home or a new home to accommodate your injury. SAH grants are available for eligible vets who have lost limbs, become blind, or suffered severe burns. You can take advantage of up to three SAH grants to renovate your home or build a new one.
NADL Program
The VA also offers eligible Native American veterans competitive loans through the Native American Direct Loan (NADL) Program. Eligible vets can take advantage of this program to refinance their current loan or to purchase, construct, or improve a home on Federal Trust land.
This Veteran’s Day, take a moment to thank a vet. If you have a veteran in your life hoping to purchase a home, share this article with them so they can learn about these great home financing options.
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