Four Ways for Military and Veterans to Save Money When Buying a Home
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by Megan Turner
- September 26, 2019
- Real Estate
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Four Ways for Military and Veterans to Save Money When Buying a Home
At the Brandon Turner Team, we believe everyone deserves an authentic home that fits their values and financial goals. We believe our military heroes deserve a little more. The men and women who have fought for our freedom also deserve some help to make the process smoother and less expensive for themselves and their families.
There are many programs to help make it easier for Veterans and active-duty military members to buy a home. You have probably heard of the VA loan program, but there are other organizations and programs to that provide additional financial assistance.
Keep reading to learn about grants and other programs to help with closing costs and the home buying process in general. We will discuss the benefits of a VA loan, but let’s begin with the programs you may not be as familiar with.
Realogy Military Rewards
Realogy just announced a new program to thank all military personnel, Veterans, and their families for their service to our country. Military families will be able to earn cashback when they buy or sell a home simply by enrolling in the program with an affliated real estate agent. The program offers cashback paid at closing in the form of cash, gift card, or commission reduction. The cashback type is dependent upon the state where the home is sold. Cashback amounts range from a minimum of $350 toa maximum of $7500.
In addition to the cashback bonus, the Military Rewards program provides each military family an advocate to work with them and their real estate agent throughout the process. The advocate will work to ensure a seamless transaction and, along with the real estate agent, make the process as easy as possible.
Coldwell Banker Residential Broker is one of the affiliated real estate brands. Contact us to learn more about the program and enroll. This a great way to get some additional help and cash if you are a Veteran or active duty military member planning to buy or sell a home.
Dream Makers Home Buying Assistance
Dream Makers is a grant funded by the PenFed Foundation to provide down payment or closing cost assistance to our Military Heroes. The program will provide up to $5000 in assistance. Borrowers must be able to contribute at least $500 towards the down payment and/or closing costs.
Borrowers do not need to be PenFed customers or have a VA backed mortgage. All mortgages are eligible as long as it has a 97% Loan to Value ratio, and the loan is a thirty-year term with a fixed rate. The borrower must be preapproved before submitting a Dream Maker application.
Additionally, in order to be eligible, borrowers must be a Veteran, active duty military or a member of the Reserves or National Guard. The program is only for first time home buyers, those who have not owned a home in the last three years, or those who have lost a home through divorce or disaster.
There is an income requirement for the program. The borrower’s income cannot be more than 80% of the area’s median income level. However, this is adjusted for the size of the household.
The grant approval is contingent upon funding available, assuming all other conditions are met. There is additional paperwork to complete once the borrower is conditionally approved.
This is another great opportunity for our Military Heroes to receive funding to help purchase a home. We recommend you apply for this program as soon as you receive your preapproval letter since it is the only initial paperwork required. Learn more and apply for the Dream Makers program here.
Housing Grants for Disabled Veterans
Many people are aware of the Department of Veteran’s Affairs (VA) VA loan benefits offered to active duty members and Veterans. However, VA also provides grants to active duty members and veterans with certain service-connected disabilities.
They offer two types of grants to help those affected to either buy or modify an existing home to make it easier to live with the disability, Specially Adapted Housing (SAH) and Special Housing Adaptation (SHA) grants. The names are similar, but each program is different. Read on to learn the differences. Click here to learn more, including how to apply, for each grant.
Specially Adapted Housing (SAH) Grant
The goal of SAH grants is to help Veterans with certain service-connected disabilities to be able to live independently. SAH grants can be used to build a new home specially adapted for the individual or remodel an existing home to adapt it to the individual’s needs.
Eligible service-connected disabilities for SAH grant include but are not limited to loss of or use of loss of both arms OR both legs, loss of one limb combined with additional injuries, blindness, and severe burns. The maximum amount of the grant is set by law and may be adjusted each year to align with the cost-of-construction index. To give you an idea, the maximum SAH grant amount in 2019 was $85,645.
Special Housing Adaptation (SHA) Grant
SHA grants are designed to help Veterans with certain service-connected disabilities either adapt a home or purchase a home to accommodate their disability. Similar to SAH grants, SHA grants can be used to help a Veteran adapt a home they already own, buy a home that is already adapted to meet their needs, or pay to remodel a home they intend to purchase to accommodate their disability.
Veterans who are blind in both eyes, have lost or lost the use of both hands, been severely burnt, or suffered severe respiratory issues are eligible for an SHA grant. The maximum amount of SHA grant is also set by law and changes based on the cost-of-construction index. The maximum SHA grant amount in 2019 was $17,130.
VA Loan
The VA loan benefit is one of the most frequently used by Veterans and for good reason. A VA loan, or a loan backed by the Department of Veterans Affairs, helps make homebuying very affordable for Veterans, Active-Duty service members, and certain other groups. Click here to learn more about VA loan eligibility.
Benefits of a VA loan:
- No down payment required (but you can put money down if you choose)
- No mortgage insurance (typically required on a loan without a 20% down payment)
- More flexibility with credit and income requirements (makes it easier to qualify)
Looking for more information about VA loans? This is a great article about all the benefits.
Helping Heroes
Contact us if you are a military member interested in any of these programs. We would love to help you find your authentic home or answer any questions you may have.
