Whether you’re active duty military or a veteran, there are some great options for you in the home buying process. Of course, first you have to decide whether buying a home is right for you. If you’re still in active service and will have to move at a moment’s notice, owning a home might be too stressful. On the other hand, many military buyers do decide that home ownership is for them. In fact, active duty service members and veterans made up 19 percent of home buyers in 2019, and in 2020 that percentage increased to 23 percent. Lenders often consider service members to be ideal loan candidates because they’re reliable and disciplined. If you decide that you want to take the plunge into homeownership, we’ve got some information for you.
- Active-duty troops and veterans are choosing VA loans in record numbers. Why? The VA offers loans that are financed at 100 percent and don’t require a down payment. Conventional mortgage loans, on the other hand, often require 20 percent down. VA loans, unlike FHA loans, don’t require mortgage insurance. Further, while a VA loan typically requires a funding fee, veterans who receive disability benefits don’t have to pay it.
- It’s important to understand VA loan requirements. To qualify for a VA loan, home buyers must have strong credit and be able to afford to make the loan payments. Additionally, when you apply for a VA loan, you’ll need to obtain a certificate of eligibility, which establishes your military status. You’ll need to have all of your military documentation on hand and be able to certify that you’ll inhabit the house.
- For veterans who don’t qualify for a VA home loan, there are other options available. Many states, for example, offer their own veteran home loan programs with additional housing benefits. It’s a good idea to shop around and consider all of your mortgage options, including FHA loans, USDA home loans, and conventional mortgages. This is something as a brokerage we’re happy to do for you to ensure you get the best rate possible. For service members who are Native American, there are also Native American Direct Loans (NADL), which allow you to use VA loan benefits for housing on federal trust lands. If you’re not Native American but your spouse is, you may still be eligible.
At First Coast Mortgage Funding, we offer creative solutions to help borrowers improve credit and overcome roadblocks when trying to secure home financing. Committed to helping people in the First Coast region buy and refinance residential properties, we specialize in every kind of property, working to provide home loans to our clients at the lowest interest rates, with the best possible service. Contact us through our website or call 904.770.5000 for more information.