by Zerline Hughes Spruill
Washington Informer
After serving and sacrificing their lives for the country, it is crucial that veterans are well-informed about the benefits and options available toward housing and becoming homeowners, particularly as access to affordable housing and homelessness continues to be an issue in the nation.
In a recent Point-in-Time (PIT) Count, there were 328 people experiencing homelessness in the D.C. area, according to a Street Sense report. While there are various programs to help, shelter and support veterans in temporary and rented housing, there are also paths to homeownership, and it’s important for veterans to know that there are special loan offerings they may be eligible for when considering buying a home.
Since 1944, more than 25 million active military and veterans have purchased homes with assistance from the VA home loan program, according to the Defense Credit Union Council. Equally important is qualifying for a Veterans Affairs (VA) loan. Applicants do not have to pay a down payment, the loan allows qualified veterans to use gifts or grants for closing costs, and mortgage insurance is not required.
Check out some additional helpful resources available for veterans seeking to become homeowners:
- When starting the homebuying process, the National Association of Realtors recommends inquiring of realtors whether or not they have a Military Relocation Professional (MRP) certification. This credential means your real estate professional is specifically trained to work with current and former military service members.
- For veterans looking to modify their home or purchase a new one due to disability accessibility needs, two grants are available: Specially Adapted Housing (SAH) and Special Home Adaptation (SHA). This year, the SAH grant provides up to $117,014, and the SHA grant provides up to $23,444, according to the U.S. Department of Veterans Affairs. The SHA grant can be used over the applicant’s lifetime to renovate, or install equipment like ramps, bars or widen doorways.
- When it is time for your appraisal, veteran homebuyers must request a VA- approved appraiser to ensure the home meets certain standards.
Learn more about veterans home buying from these resources:
Defense Credit Union Council Veteran’s Home Buying Guide
Wells Fargo Hands on Banking for Military
Take advantage of free online resources that have been designed for military personnel and veterans so you can be a savvier home shopper. For example, Wells Fargo’s Hands on Banking for Military offers guidance on topics from banking basics and smart spending, to home buying and retirement.
- Before assuming anything positive or negative about qualifying for a loan, talk to a lender. Veterans and service members should be sure to tell the lender that they have served or are currently serving in the military so that they can present the special options available, such as a Department of Veterans Affairs (VA) loan. This loan is a home loan guaranteed by the federal government, designed to help those who have served in the military obtain homeownership. The VA loan features no down payment for qualified buyers and allows for gifts or grants to be used in covering closing costs. Plus there is no mortgage insurance required.
- A large portion of qualified loan applicants aren’t taking advantage of the low-to-no-down payment mortgage options available through VA loans. Indeed, in 2019, only 58 percent of veteran homebuyers used a VA loan, according to the National Association of Realtors. This may be due to the common myths such as that active-duty service members, National Guard members and reservists are not eligible. In addition, many are also unaware that they can use their VA loan benefit multiple times by having their benefit restored by, for example, selling a home and paying the loan in full.
- Individual banks, not the Department of Veterans Affairs, offer VA loans, allowing you to work with a lender and a mortgage professional with whom you feel comfortable. You should feel empowered to shop around and find the lender that will best meet your needs.