Buying a house does not come cheap.
It is on everyone’s priority list to live in a house that they own. It is one life decision we will make that needs thinking and careful planning.
But even before you can set foot in your dream home, you will have to do a lot of saving and working tirelessly to be able to afford it.
One thing that people need to save up first is the down payment for the property. In a standard conventional loan, a lender may ask a borrower to put up a 20 percent down payment.
That alone isn’t an easy feat.
Military veterans, active duty members, and reservists are not exempt from this struggle. The sad truth is there are even veterans out there who do not have a roof over their heads just because the cannot afford to pay a mortgage
Fortunate for those who are eligible, the Veterans Affairs have a number of affordable home loan programs which can be used to purchase houses. There are even loans that allow them to refinance existing mortgages.
In addition, military veterans and active duty members may qualify for down payment help. Aside from the many local, state and federal programs they can avail, there are also additional programs intended and designed with them in mind.
The VA Loan
One for the housing benefits the VA offers is the VA home loan. The beauty about this program is that it offers the zero down payment option. First-time military or veteran homebuyers who are buying a house through a VA home loan may be able to waive any down payment requirements.
There are also state programs that cater to military and veterans.
In the State of Arizona, particularly in the City of Phoenix and the Maricopa County, there is the Home in Five Advantage Program.
A qualified military or veteran may be eligible for a 2.5 percent of a 3.5 percent assistance, plus an additional 1 percent for being a qualified US military personnel. This fund can be used not only towards down payment but also to cover the closing costs during a home purchase.
While there is a need to pay a .5 percent origination fee, this assistance comes in the form of a grant. Meaning, the money does not have to be repaid.
Another example is the Florida First & Military Heroes Program by the Florida Housing Finance Corporation.
This program provides access to a mortgage loan with a reduced interest rate. This financing is not only available for first-time homebuyers. As long as the military or the veteran homebuyer qualifies, they can get the financing. The loan as to be guaranteed by either the VA, the FHA or the USDA RD.
You also have the Home For Texas Heroes offered by the Texas State Affordable Housing Corporation or TSAHC.
This home loan program is offered to Texas veterans who meet the eligibility requirements. They may take advantage of a 30-year fixed interest rate mortgage. What’s best about this is that the TSAHC gifts qualified borrowers with 3 percent to 5 percent down payment assistance which does not need to be repaid.
Moreover, first-time homebuyers may avail of a Mortgage Credit Certificate. Those who combine the down payment assistance and the MCC assistance will get their MCC with zero obligations.
These are just three examples of programs that cater to our heroes. To check if there are similar programs like this in your state or locale, get in touch with a lender.