The Veterans Administration sent out notice that they would allow income to be treated the same for Same Sex Marriages, as they are for Opposite Sex Marriages. This has been a long standing barrier to folks who want to buy a house in NC, using VA Loan Benefits – because often times the income of the spouse determines the “amount” of house you can qualify for.
VA Loans For Same Sex Marriage Couples in NC
VA Circular 26-13-18 was issued on September 26, 2013 and provides an “interim process” for same sex couples. According to the circular, “Effective immediately, the Department of Veterans Affairs (VA) will, to the extent legally possible, begin reviewing applications for the home loan guaranty benefit for same-sex married couples in a manner consistent with processes currently used for opposite-sex married couples.”
That means that same-sex “Legally” married couples can qualify for this great home ownership benefit in States that “recognize” same sex marriages. If both parties are Veterans, with Full Benefits, then this ruling has no impact on your ability to buy a house in North Carolina. Call us at 919 649 5058.
Assuming only one Spouse in the Same Sex Marriage is a Veteran, the VA would only allow us to use the income of the Veteran. To qualify, the same sex couples often had to come up with a down payment.
“As a result of the President’s directive, VA and the Department of Justice are working diligently to provide comprehensive guidance on the delivery of benefits to same-sex married Veterans, including guidance for determining applicable state law when establishing the validity of a marriage.”
Thankfully, this ruling does apply in North Carolina. Our state did not pass the Same Sex Marriage Amendment in 2012, however, recently Buncombe County started issuing Marriage Licenses. “I think it’s pretty clear that there is a contradiction between state law and federal law, and we want some clarification,” the Register of Deeds said at the time. Fortunately, the Supreme Court Ruling changed this!!!
We recognize that this is an important decision for many Military families – however, in North Carolina, we can provide VA Loans under the new Same Sex Marriage Provision!
Alternatives For Same Sex Marriage Couples in NC
If both partners are NOT Veterans, there are alternative ways to buy a home in NC. Only VA Loans look at marital status. Because of this, in North Carolina, we often show Same Sex Married Veterans how they can still buy a home with no down payment using the USDA Home Loan program. The USDA Loan in NC is available for homes that are in a slightly less Urban setting, and currently every county in NC has an area that qualifies for the program (in many counties – the whole county qualifies)! There are Maximum Income requirements that must be met, and the minimum middle credit score requirement is 620. For less than $1000, most Veterans can buy a home with the USDA Home Loan Program.
If you are interested in buying a home in a more Urban Setting (not meeting the USDA Loan Guidelines) we can offer Same Sex Marriage couples a FHA Home Loan. With the FHA Home Loan, there are no restrictions of where the property must be located, however, there are maximum Loan Limits that vary based upon the County you are buying in. With FHA Loans, we can make loans to couples with a middle credit score that is at (and sometimes below) 600.
The down payment requirements for FHA Loans is 3.5%. The down payment can be a gift, and doesn’t all have to come from savings! For First Time Home Buyers, and those move up buyers who qualify can get up to 3% of the down payment in the form of a Grant from the State. The Grant is forgivable, and has no payment requirements.
We also offer Veterans who are First Time Home Buyers a Mortgage Tax Credit, that can be used with any of these mortgage programs.
If you are looking for options for VA Loans For Same Sex Marriage Couples in NC please call us! We will be glad to go through all of your options! Steve Thorne, NC Mortgage Experts 919 649 5058.