With Veterans Day just around the corner, I wanted to highlight some of the great resources out there for veteran homebuyers. These programs can save veterans thousands of dollars a year, so they’re definitely worth looking into.
1. Veterans Affairs (VA) Home Loans
Most veterans are eligible for a VA loan, which is provided by a private lender, but backed by the U.S. Department of Veterans Affairs. VA loans can be used to buy a home or refinance an existing loan. Most require no down payment, no mortgage insurance and in certain circumstances they’ll have lower closing costs. There is also no minimum credit score requirement, so it can be easier to get a VA loan than a conventional loan. You do not have to be a first-time homebuyer to qualify. For more information on VA loans and eligibility, visit www.benefits.va.gov/homeloans/.
While VA loans are an attractive option for veterans, I must caution that in highly competitive real estate markets, some veterans may want to choose a conventional loan. Some sellers consider VA loans to be more risky than conventional loans and will choose buyers with conventional financing in the event of a bidding war. But every situation is unique, so be sure to discuss your options with a Redfin real estate agent first.
Get pre-approved and secure your dream home
Work with a lender to find the right loan for the home you love.
The Department of Veterans Affairs offers an Interest Rate Reduction Refinance Loan (IRRRL) that enables you to lower your interest rate and reduce your monthly payments by refinancing your existing VA home loan, even if there is no equity in the property. It does not require an appraisal or credit underwriting package, so it’s easy to apply for, and it may be done with no out-of-pocket expenses.
The VA also offers a Cash-Out Refinance Loan for homeowners who want to take cash out of their home equity to take care of concerns like paying off debt, funding school or making home improvements. The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan.
3. Down Payment Assistance
Although VA loans require no down payment, in some cases veterans may want or need to put the money down. For instance, making a down payment will lower the overall cost of the loan, reducing monthly payments. In other cases, the sale price of a home purchased with a VA loan might exceed the appraised value of the property (which can happen in bidding war situations), requiring the veteran to pay the difference. Additionally, some lenders may require a down payment if the veteran has credit issues.
The VA does not have a federal down payment assistance program, but many states do. The state programs will provide a down payment up to a certain dollar amount, as long as you meet certain conditions, such as household income caps. You can find more information on what’s available in your area through your local veterans’ commission.
4. Property Tax Reductions
In addition to down payment assistance, some states have property tax exemption programs for veterans. With these programs, veterans who meet the requirements (often those who are disabled, over a certain age or with limited income) don’t have to pay property taxes, which can add up to thousands of dollars every year. Contact your local veterans’ commission for more info.
5. Financial Counseling
To help veterans in serious financial trouble who may foreclose on their home, VA Regional Loan Centers have technicians available to conduct financial counseling. If you want this assistance, call 1-877-827-3702 to reach a representative who can assist you. In addition, there are nonprofit programs like VeteransPlus that will help you and your family create a budget, manage debt, start a savings plan, avoid predatory lenders and more.
Get pre-approved and secure your dream home
Work with a lender to find the right loan for the home you love.
About Alyssa Cokinos, Redfin Agent
Alyssa helps people buy and sell homes in the Hampton Roads area of Virginia. Prior to becoming a real estate agent, Alyssa served as an electronics technician in the U.S. Navy. During her time in the Navy, she lived and trained on the Dam Neck base in Virginia Beach, where she fell in love with the area. Since joining Redfin, she has helped many military personnel relocate to and from the Hampton Roads area. To get in touch with Alyssa, visit Redfin.com.
If you are represented by an agent, this is not a solicitation of your business. This article is for informational purposes only, and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax professional. Consumers should independently verify any agency or service mentioned will meet their needs. Learn more about our
Editorial Guidelines here.
United States
Canada