U.S. military veterans who are purchasing homes, particularly those doing so for the first time, are often eligible for certain benefits that help them save money and alleviate stress in the home-buying process. The Department of Veterans Affairs (VA) has backed tens of millions of mortgage loans for those who have served our country in the armed forces. The VA does not loan money; a mortgage lender does that. The VA, however, agrees to cover a veteran’s debt if he or she defaults on the loan.
If you or your spouse are currently serving in the U.S. military, there is something you should know about VA-backed mortgage loans. They are not just for veterans. In fact, many of the home-buying benefits available to veterans are also available to active-duty service members and their spouses.
Learn more about VA loans for active military members
Perhaps you and your spouse were in the process of looking for a home to buy when one of you received orders from the U.S. military to deploy overseas. You might think all hope of getting your dream house is lost, since the service member won’t even be here to settle at closing. Not only might you still be eligible for a VA loan, you can also designate a power of attorney to your spouse or another party to act on your behalf at the closing table.
Service members who have been on active duty for 91 consecutive days during war time are typically eligible for a VA loan. Members who have served during peace time must have fulfilled active duty for 181 consecutive days. If you or your spouse served six or more years in the Reserves or National Guard, eligibility for a VA loan may apply to you, also.
VA loan benefits for spouses of deceased military members
The VA provides home purchase benefits to spouses whose partners have died as a direct result of a military-related disability or in the line of active duty. It’s helpful to meet with a lender who is experienced in processing VA loans. Doing so can help you determine if you are eligible and give you a clear idea of the benefits you can receive to purchase a home.
Such benefits typically include no down payment requirement, no mortgage insurance, lower interest rates, and more. If you or your spouse have been honorably discharged from the U.S. military or are currently serving, a VA loan might be a valuable resource to help you become a new homeowner.