For many veterans, buying a home is an important goal. Fortunately, veterans’ benefits can help make this goal a reality.
However, like anything, it is important to understand the process before jumping into the home-buying process.
VA home loan
One of the most significant benefits available to veterans is the VA home loan program. This program provides veterans with a guaranteed home loan with no down payment required. This means that veterans can purchase a home with little or no money down, which can be a significant financial advantage.
In addition, VA home loans typically have lower interest rates than conventional mortgages, which can save veterans thousands of dollars over the life of the loan. The VA home loan program also does not require private mortgage insurance, which can save veterans even more money.
VA funding fee
While the VA home loan program does not require a down payment, it does require a funding fee. The funding fee is a one-time fee that buyers pay to the VA to help offset the cost of the program. Those buying a home can roll the fee into the loan amount, so they do not have to pay it upfront.
The amount of the funding fee varies based on the veteran’s military service and the size of the loan. However, some veterans are exempt from the funding fee, such as those with a service-related disability.
By taking advantage of these benefits, veterans can achieve their dream of homeownership and enjoy the financial benefits that come with it.