Every November 11th, our country sets aside the day to honor and recognize the men and women who have put their own lives in danger for the betterment of the United States. “In the real estate world, their service is honored every day, year round in ways many vets may not know about,” says Winster Ceballos, Sales Associate at ERA Justin Realty, There are financial programs dedicated to helping veterans become homeowners with little to no money down on their first house. Here is a look at some options.
The VA Loan Program – Zero Down Payment
The U.S. Department of Veterans Affairs (VA) offers one of the most significant benefits to veterans and active-duty service members: the VA Loan. “This loan requires no down payment, making it an attractive option for first-time homebuyers who may not have substantial savings,” says Jennifer Darby Metzger, Broker/Owner at ERA Justin Realty, “Not only does the VA Loan eliminate a traditional down payment, it also requires no PMI.” Private Mortgage Insurance is an extra monthly payment tacked on to mortgages with less than a 20% down payment. No PMI can shave hundreds of dollars off a veteran’s monthly payment. Since veterans can finance 100% of their purchase price, they can save tens of thousands of dollars up front. There is a VA funding fee at closing, but that can be rolled into the mortgage payment.
Down Payment Assistance Programs (DPA)
Many state and local governments offer Down Payment Assistance (DPA) to help veterans with their home purchases. “These programs provide grants or low-interest loans that can cover part or all of the down payment,” says Ceballos, “The best part is repayment of those loans could be waived down the road.” DPA programs often have special provisions for veterans, which can include forgivable loans if the veteran stays in the home for a specified period.
Happy Veterans Day
These programs and more make every day a Happy Veterans Day for our men and women in uniform, if they know how and where to get the funding. A knowledgeable real estate agent can help veterans identify the appropriate programs and make applications. If you’re a veteran interested in becoming a homeowner, Winster Ceballos or any of the agents at ERA Justin can help. Give us a call at (201) 939-7500.