Veterans that use the VA loan benefit they are entitled to don’t need a down payment. The VA loan program provides 100% financing up to the county limit for the veteran’s area. But having a down payment certainly isn’t a bad thing. If nothing else, it helps boost the veteran’s equity right from the start.
Today there are thousands of down payment assistance programs available for veterans, many of which have funds available today. Whether you use the funds for the down payment or to help you get your closing costs paid, these programs are worth exploring.
PenFed Foundation Dream Makers Program
The most common down payment assistance program is the PenFed Foundation Dream Makers Program. The Foundation will match your contributions 2 to 1, but they require a minimum contribution of 3% on your part. The maximum amount of the grant is $5,000. You need to meet the following in order to qualify:
- You must be a veteran or on active duty
- You must a first-time homebuyer or not have owned a home in the last 3 years
- Your gross annual income must not be more than 80% of the average income for the area
- You must have a loan pre-approval from a lender
- The loan must be for a 30-year term and for a maximum 97% LTV
- You can use any type of home loan program including the VA program
ANDP Veterans Program
This Atlanta Georgia program provides veterans with reasonably priced renovated homes as well as down payment assistance to those that qualify.
In order to qualify for the program, you must:
- Have an honorable discharge from the military
- Be pre-approved by a lender
- Not own any other homes
- Take a HUD-Approved home ownership course
- Meet HUD income qualification guidelines
- Live in the home as your primary residence
Home in Five Program
The Home in Five Program helps veterans in Maricopa County with down payment assistance. Borrowers are usually eligible for up to 3% in down payment assistance. In order to qualify you must:
- Have a credit score of at least 640
- Have annual income no higher than $92,980
- Have a debt-to-income ratio no higher than 45%
- Take a home buyer education course
- Buy a home for $371,930 or less
Home for Texas Heroes
The Home for Texas Heroes helps veterans living in Texas with the down payment. They can receive up to 3% of the purchase price in assistance.
You don’t have to be a first-time homebuyer to qualify. As long as you are a veteran and you make less money than the program allows for your county (each county varies) you may qualify. Once you find a realtor and attend a home buying course, you may be eligible to receive the down payment assistance and special financing.
Veterans have many ways to get the help they need with their down payment. As long as you served your time in the military and you had an honorable discharge, there are many programs that can help you become the homeowner you’ve always wanted to be.