Using Your Veterans Benefit to Buy a Home
May 31, 2019 06:00AM
By Pamela Johnson
Those eligible for VA loans should at least look into taking advantage of this benefit
Probably one of the most talked about GI benefits is the VA Home Loan. You’ve probably heard of it, but have you ever thought of it using it? What is the benefit, how can it help you, and what’s the process?
Experience tells me that in our area, this is an under-utilized tool by many real estate agents and loan officers. Why? Because like anything having to do with the government, there are a few internal twists. But fear not—if you hire an experienced agent and have the right loan officer, you won’t even be aware of these.
What’s the Benefit?
While there are other housing-related programs that will help assist in repairing, retaining, or adapting a personal home, we’re specifically referring to the VA home loan. This type of loan is available through private lenders to service members, veterans, and qualifying surviving spouses. In a nutshell, the VA stands behind the loan, guaranteeing a portion of it, and either eliminating the need for or in lieu of a 20% down payment, as well as costly private mortgage insurance. It can be used to buy, build, or refinance a primary residence.
How Can It Help You?
- Limited or Zero Down payment
- No Mortgage Insurance (there is a one-time funding fee)
- Re-Usable & Assumable
What’s the Process?
The first question to ask is, do you qualify? If the answer is yes:
- Hire a Realtor experienced in working with and negotiating VA transactions.
- Get financially pre-qualified by a lender that does VA backed loans, since not all banks do.
- Obtain your Certificate of Eligibility (COE). The lender can help you with this.
- Find your home
- Negotiate the terms of your transaction
- Apply for your loan
This article was submitted by Carol-Ann Palmieri of Al and Cal Realty Group, Remax Executive Realty. "The Team That Works" Tel: 508-494-9061.