Home Buying Options For Military Or Veterans
Active military and military veterans have unique home buying opportunities available to them in the lending market. These programs are designed to make buying a home easier and more affordable. If you are currently serving in one of the armed services branches or are a recognized military veteran, you should learn about these lending programs before you set out to find your perfect home.
Veterans Administration Loans
One of the most compelling ways to obtain relatively fast and simple financing for military and military veterans is through the Veterans Administration loan program. VA loans are designed specifically for current military members as well as veterans and retired military personnel.
You can obtain a VA loan to either buy or refinance a home. To apply for a VA loan, you must secure financing through a VA loan-approved lender, which include many banks, credit unions, and mortgage lending firms. If approved, you could secure a loan for up to $417,000. The amount for which you are approved, however, will depend on your income, your credit score, the value of the home you wish to buy or refinance, and other factors.
This program does not require that you have a minimum credit score for approval. Instead, the VA loan program will determine your eligibility on other factors like your income. Depending on your credit score, however, you may qualify for a loan with little if any money down.
USDA Home Loans
Military personnel and veterans, who wish to buy a home or land in a USDA-approved rural community.
To be eligible for this program, however, you also must have an income that falls at or below the approved federal income guideline. Because this program is designed for low-income earners, the USDA does not require that you have perfect credit. Nonetheless, you could be approved easier if your credit score is 620 or above.
Further, USDA loans must be used to buy a home or real estate rather than refinance it. Depending on your credit score, you could be approved for a loan with as little as one percent of the purchase price of the home down. Interest rates for these loans can also be as low as one percent. Obtaining a USDA home loan can be done by submitting an application through a USDA-approved lender.
Military members and veterans can also secure financing for a new home through the U.S. FHA loan program. This mortgage lending program, which is geared toward first time home buyers or buyers who plan on making energy-efficient improvements on their homes, can be used to finance most if not all of the purchase of your home.
The program also emphasizes the purchases of fixer upper homes rather than newer homes or new home construction. If approved, you could secure a loan for little if any money required for a down payment. Interest rates for FHA loans can also be as low as one percent.
To be approved for an FHA loan, you must apply through an FHA-approved lender like a bank or credit union. You also must have a credit score at or above 580. Most lenders also prefer that you have a relatively low debt-to-income ratio and a steady income.
People who are serving in the military or those who have recognized veteran status have unique home buying programs available to them today. These programs intend to make home buying faster and simpler and also can accommodate military or veteran home buyers who have limited incomes and lower than average credit scores.
If approved, you could secure financing at a low-interest rate and for very little money needed for a down payment. Before you start looking for your perfect home, you should learn more about these programs and the criteria needed to be approved for them.