Owning a home is anyone’s dream, but for some veterans dealing with medical, mental, and physical issues due to serving in the military and life in and outside of war, owning a home can seem like a dream that may never come true. Homeownership can also be difficult for veterans facing financial hardships. Empowering veterans so they can be safe from homelessness and living in poverty is a goal that is not only noble but entirely achievable.
Whether you’re looking to buy a home for yourself as a veteran or you wish to do your part in the community and help a veteran get into homeownership, there are ways that VA loans make homeownership achievable. Learn what a VA loan is and any applicable criteria needed to obtain one, what the loan is for, and how getting a VA loan is empowering veterans by helping them get into a home.
What Is A VA Loan?
It’s important to understand what a VA loan is before embarking on trying to secure one for homeownership. Put simply, VA loans are special loans reserved for people of the military to buy a house. To qualify for a VA loan, an applicant has to either be active or retired military status. A spouse of a military veteran can also be part of the VA loan application process. Essentially, a VA loan is used to pay for the purchase of property, being paid back over a set amount of years via monthly payments.
A VA loan has other criteria that must be met before it can be fully obtained. For example, an applicant has to have a credit score at a certain number or higher. Houses that can be purchased under a VA loan must meet certain criteria as well. A ‘funding fee’ is also usually required as part of the application process, but this feel can be buried into the loan amount so it’s not always paid upfront.
What Is A VA Loan For?
A VA loan is similar to other home loans in that it helps make homeownership achievable where it otherwise would be difficult to do financially. The difference between a VA loan and a conventional or other type of real estate loan is the specific type of applicant this loan applies to. With a VA loan, you stand a better chance of being able to afford a home that you otherwise could not pay for out of pocket. The loan helps cover closing costs as well as the purchase price of approved property.
How VA Loans Make Homeownership Achievable
VA loans carry many benefits veterans and active military people (and their families) can enjoy. If you’re looking to buy a home and need to know if this type of loan is best for you, consider the following benefits.
No Down Payments
Many traditional home loans require a down payment from the buyer, even with a home loan. A VA loan allows you to purchase a home with no down payment at all. This means you can put more money into making your new house a home or to save for home repairs, unexpected emergencies, or more. No down payment also allows you to have more options when it comes to home prices.
Competitive Interest Rates
With interest rates constantly on the rise, it’s hard for the typical home buyer to get into the home they want without hefty monthly payments. Interest dramatically affects what a monthly mortgage payment will be, which is another reason why VA loans make homeownership a more achievable reality — competitive interest rates. The lower the interest rate, the lower your monthly mortgage payment can be, which means you can have a broader budget for home buying.
No Private Mortgage Insurance
Since VA loans are backed up to a certain percentage, homeowners who buy a home with this type of loan aren’t required to have private mortgage insurance (or PMI). This makes monthly home payments cheaper for veterans on a limited income even though they don’t have to put any money down on their homes initially.
Foreclosure Avoidance Assistance
No one wants to go into foreclosure on their homes, but it happens. Over 357,000 American homes went into foreclosure or faced foreclosure concerns in 2023 alone. With a VA loan, you can have the assurance knowing if you fall behind financially and economically, you’ll have the assistance you need to help you keep your home.
Less Homelessness
While homelessness in America is a growing concern in general, it’s especially concerning among the veteran population. This is due largely in part to mental health and physical issues caused by serving in the military that many veterans succumb to. Nearly 40,500 veterans are homeless in America, and the opportunity to have access to VA loans can help keep more veterans and their families off the streets and in safe, comforting homes.
Is A VA Loan Right For You?
A VA loan may be right for you if you’re active military or a veteran, or if you’re married to someone who is. If you need financial assistance getting into a home but don’t have a very high credit score or any money to put down on a home, then a VA loan may be right for you. Check to see what requirements you need to obtain your VA certificate of eligibility and you can be on your way to obtaining the home loan you need to get into property of your own.
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