07 November . 2018
Top 5 homebuyer benefits for veterans
The U.S. Department of Veterans Affairs offers a tremendous benefit to help veterans own their own homes.
In a video, Mark Connors of the VA Home Loan Guaranty Service explains the Top 5 benefits of the program:
- 100 percent financing, meaning that a veteran can become a homeowner with no down payment.
- No Private Mortgage Insurance, or PMI, is required with a VA loan. On conventional loans, PMI is required unless a 20 percent down payment in provided. PMI typically costs between .5 and 1 percent of the amount financed each year, so a $250,000 loan without PMI can save a veteran up to $2,500 a year.
- VA Appraisal. The VA conducts an appraisal before the loan closes, to determine the accurate market value of the property, and also to make sure that it will provide a safe, sound and sanitary home for the veteran and their family.
- Home retention. In the event that a veteran faces financial difficulty after moving into his or her home, the VA pledges to use all of its resources to work with the borrower and lender, to help the veteran stay in the home.
- State and local tax benefits. Some state and local taxing authorities offer tax relief benefits for veterans, especially for qualified disabled veterans.
Other benefits include a VA rule that limits the amount of closing costs that can be charged to veterans, and sellers may pay closing costs.
Veterans don’t have to be first-time homebuyers to take advantage of VA-backed loans, and they can reuse the benefit. VA loans are assumable, as long as the person assuming the loan qualifies.
Some homebuilders may also offer discounts for homebuyers who are veterans.
To get started, Connors recommends contacting a professional real estate agent. For veterans who have served in the past several decades, the required Certificate of Eligibility can often be accessed electronically in seconds.
With year ‘round events and activities, and more than 100 acres of parks, trails and natural open spaces, Rancho Sienna is a perfect community for veterans and their families. Explore new homes in all price ranges.
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