If you need assistance, please call 910-679-6577

Taking the Guesswork Out of the Homebuying Experience for Veterans

Wednesday, January 29, 2020   /   by Anne Rose

Taking the Guesswork Out of the Homebuying Experience for Veterans

contributed by Jen Reed

Veterans sacrifice a lot for this country. To help honor these sacrifices, special programs were put in place to aid vets in getting and keeping a home. Unfortunately, not all veterans know that these programs exist. Even for those who do, they may not realize exactly what options are available for them and may apply for a program that doesn’t really match their situation ideally. Based on the programs, veterans can qualify for loans under 3 percent, so there are certainly some advantages to checking it out.


To help sort out some of the confusion, here are a few of the most common home programs that vets might be interested in. As requirements and availability can change over time, be sure to find out more before attempting to apply for any specific program.


VA Home Loans


One of the most commonly used home programs for vets are VA home loans. These loans are subsidized by the Veterans Administration itself, similar to HUD home loans or rural loans subsidized by the Department of Agriculture. Thanks to the VA subsidy, vets can qualify for better-than-average interest rates and may be able to reduce or eliminate down payments or closing costs as well. Houses must meet the livability requirements of the VA to be purchased with a VA home loan.


VA Foreclosure Programs


Another useful home program for vets is the VA foreclosure program. This features homes that have been foreclosed upon that meet livability requirements, allowing vets to buy the homes at a discount from their market value. This lower price can make VA loans even more affordable since there is less to repay from the start.


Loan Forbearance


One problem that vets sometimes face is getting behind on mortgage payments and running the risk of losing their home. The VA offers loan forbearance programs that can help with this. While this doesn’t serve as loan forgiveness, the forbearance does temporarily stop repayments to give veterans more time to catch up. There are no penalties accrued during the forbearance period – and pending foreclosures won’t move forward while the loan is in forbearance. Once the forbearance period ends, the vet can begin making payments again at their normal rate.


Loan Modifications


VA-backed loan modifications are another option for vets that are struggling with their mortgage payment. These modifications can make changes to the interest rate, interest type or even the repayment period of the loan to reduce the amount of the monthly payment. There are a few different types of loan modifications available for vets ranging from basic loan refinancing to specialized repayment plans designed to keep vets in their homes when times are tough. The specific terms of the modification will depend on the specific program or plan that the veteran uses to modify their loan.


Finding the Right Program


If you’re struggling to navigate the complexities of some of these programs, there are mortgage and loan experts out there who can help you. They have experience dealing with VA programs and may be able to advise you on which programs are best for your situation.


  wilmington nc, house hunting, finance, veterans

Licensed in North Carolina Copyright © 2000-2014 Keller Williams ® Realty. - a real estate franchise company. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. Each brokerage is independently owned and operated. Site enhanced by MTritt.com
Copyright 2020 NCRMLS. All rights reserved. North Carolina Regional Multiple Listing Service, (NCRMLS), provides content displayed here (“provided content”) on an “as is” basis and makes no representations or warranties regarding the provided content, including, but not limited to those of non-infringement, timeliness, accuracy, or completeness. Individuals and companies using information presented are responsible for verification and validation of information they utilize and present to their customers and clients. NCRMLS will not be liable for any damage or loss resulting from use of the provided content or the products available through Portals, IDX, VOW, and/or Syndication. Recipients of this information shall not resell, redistribute, reproduce, modify, or otherwise copy any portion thereof without the expressed written consent of NCRMLS.
This site powered by CINC: www.cincpro.com