We live in a world filled with conflict – deadly battles in Ukraine and around Israel, gang warfare in Haiti and Mexico, and smoldering unrest in dozens of other locations. (The BBC provides excellent coverage from many of these locales on a near-daily basis, by the way.)
These sad developments remind us of how fortunate we are to live in a country relatively free of such horrific events every day – thanks in part to the servicemen and women who put their lives on the line to protect our country and its citizens. These active members of the U.S. military and those who preceded them are committed to national defense and readiness to face danger.
In marking Veterans Day on Nov. 11, we are reminded of their sacrifices – whether they are stationed in a faraway country or on American soil. Giving service to your country can take an immense personal and emotional toll, and we all should be grateful for their efforts.
The real estate world takes heart in the dedication of those service members and veterans by offering many benefits when looking to buy a home. Here are a few:
VA Loan – It starts with the VA mortgage loan program from the U.S. Department of Veterans Affairs. The government-backed initiative is designed to provide eligible veterans, active-duty service members and some members of the National Guard and Reserves with access to affordable home financing.
The program allows qualified individuals to secure home loans with favorable terms, including no down payment requirement, competitive interest rates and the elimination of private mortgage insurance. The VA guarantees a portion of the loan, which encourages lenders to offer more flexible terms – and is one of the greatest benefits to all who qualify.
The VA mortgage program is a life-long benefit with no limit on how many loans are taken.
Down Payment Assistance – Affordable homeownership programs are on the rise, and many options specifically benefit active and retired military members and their families. Among the 2000+ home buyer and down payment assistance programs available across the U.S., we count 60 that feature incentives for military home buyers. Some 189 programs waive first-time-buyer requirements for veterans and military personnel.
The Washington State Housing Finance Commission offers the Veterans Down Payment Assistance Loan Program, which provides financial support for honorably discharged veterans, military spouses who never remarried and dependent children of deceased veterans. Program participants can receive up to $10,000 and a 3% mortgage rate – even while rates today are more than double that figure (as of November 2023). Payments can be deferred for the lifetime of a loan and are typically repaid when selling the home.
The program has a household income ceiling of $146,500 in King and Snohomish counties, and $114,600 elsewhere in the state. Borrowers must also be a first-time buyer or purchasing in a targeted area. In King, those areas include Seattle neighborhoods within Belltown, the Central District, downtown Seattle, Ravenna, University District, Uptown, First Hill, Chinatown-International District, Mount Baker, Beacon Hill, Columbia City, Hillman City, Georgetown and Rainier Beach. Other areas also qualify, such as parts of Kent and Auburn.
The state allows applicants to combine the veteran program with the state’s popular Home Advantage or House Key first mortgage loan offers. Check out the website for more details or contact local loan consultants.
In addition to lower mortgage rates and assistance to make the down payment, the U.S. government announced in 2023 an improved fee structure for VA loan applicants:
The VA requires a one-time funding fee for most borrowers and is used to help administer the program. The fee is typically a percentage of the loan amount and varies based on factors like the type of service, down payment and whether the borrower has used the VA loan benefit before.
Active-duty service members usually pay a lower fee, while Reservists and National Guard members might pay a slightly higher fee. Disabled veterans may be exempt from this fee. The fee can be financed into the loan, reducing the upfront cost for borrowers.
Buying a home is one thing but retaining a roof under one’s head after purchasing can be challenging as well. For the 12 months ending in September 2023, the VA helped 145,480 veterans retain homeownership or avoid foreclosure.
In addition, the VA recently began deploying a home retention option that provides long-term solutions to address the most severely affected veteran borrowers. The VA Servicing Purchase – or VASP – program can help veterans behind on their mortgage payment and who do not qualify for traditional home retention options.
Acknowledging the sacrifices of members of the military and war veterans is essential not only as a token of appreciation but as a means of addressing their needs, fostering a stronger society and upholding the values of a grateful nation.
Please remember to thank a member of the military past and present at this solemn time – and pray for peace.