This is Why Veterans Don’t Have to Make Down Payments
You may have heard that US Military Veterans don't have to make down payments on their home mortgages. Although there is no government program that directly funds the down payment on a veteran's home or gives special loans, there is some truth to this.
Helping our military men and women
Our veterans put their time in to protect our country, and one way that we make things easier for them is to help them buy a home
. A VA or Veterans Affairs loan is a special loan for veterans and active military members. These mortgages don't always require a down payment, and they are made by private lenders, not the government. However, they guaranteed by the Department of Veterans Affairs. They also do not require mortgage insurance or require a high credit score.
How the program works
According to va.gov
, there is a program for active duty service veterans or those who spent at least six years in the National Guard that will guarantee the mortgage. By taking advantage of this, a buyer can avoid a monthly PMI bill and skip making a down payment. They will likely pay a one-time funding fee and have a ceiling on the amount of the mortgage based on certain factors of their situation.
There is a window of time when servicemen and women are eligible for the loans, and they must obtain a certificate of eligibility to prove their service. Lenders have their own set standards regarding credit scores and underwriting costs. Fortunately, there is much flexibility with the program. However, lenders must prove their ability to repay the mortgage loan and agree to a thorough examination of their current employment status, as well as the costs of living in a new home
This truly is a great program for our servicemen and women. Contact your lender to find out if you qualify.