One of the best benefits available to Veterans is the ability to purchase a home with no monthly PMI and no down payment. You can use your VA Home Loan benefits more than once! If you used your VA Home Loan Benefits 20 years ago to buy your first home, and then you sold the house, you VA Home Loan Benefits were immediately reinstated.
The VA Loan came about as part of the 1944 original Servicemen’s Readjustment Act most people refer to as the GI Bill of Rights. President Franklin D. Roosevelt provided veterans with a federally guaranteed home with no down payment.
This feature was designed to promote housing and assistance for veterans and their families, at a time when we needed more veterans to realize the dream of home ownership. The GI Bill contributed more than any other program in history to the welfare of veterans and their families, and to the growth of the nation’s economy.
Although it might seem like a complicated formula, the VA will guarantee a maximum of 25 percent of a home loan amount up to $104,250, which limits the maximum loan amount to $417,000 (except in some very high cost areas where they go over $700K). Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. All veterans must qualify for the loans, they are not automatically eligible for the program.
Today, there are over 30 million soldiers and service personnel eligible for VA home loan financing. This loan 100% loan is attractive and has many advantages. Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime.
If you are a first time home buyer, you might also qualify for the NCHFA Program that includes up to 3% that can be used for closing costs. You can also qualify for Mortgage Tax credits (yes there are mortgage tax credits still available for First Time Home Buyer loans!) The Mortgage Tax Credits (MCC) could help you qualify for a bigger house, and will give Veteran’s up to $2000 a year in added tax credit (and you STILL get to write off the mortgage interest on your tax returns!)
Veteran’s! Want to know more about your VA Home Loan Benefits? Call Us! Call Steve and Eleanor Thorne, Cary, NC 919-649-5058