Editor’s Note: This blog was originally published in August 2018 and has been revised to reflect industry statistics, trends, and updates.
There are millions of active-duty and retired U.S. military service members, and many require financial assistance to purchase a home. The U.S. Department of Veterans Affairs (VA), state and local governments, and various foundations offer programs helping veterans purchase, refinance, or improve their homes. There are also various loans and grants for eligible active and retired U.S. military members.
As an authorized lender providing government-backed loans, Contour Mortgage can assist with these important processes, associated questions, requirements, and qualifications.
Consult this useful explainer for more information on available loans and grants for qualified U.S. veterans.
1.) VA Loans
Guaranteed by the VA, these loans are available for veterans and active-duty military service men and women, as well as surviving spouses, reservists, and National Guard members. Though there’s no associated down payment, other costs could include appraisals, inspections, and title fees.
Due to its government backing, VA loans don’t require private mortgage insurance (PMI). Credit score rankings and debt-to-income (DTI) ratios are more lenient also, for easier approvals.
2.) Specially Adapted Housing Grant
According to the VA, the Specially Adapted Housing (SAH) grant is designed “to help disabled Veterans by providing a barrier-free living environment, such as a wheelchair accessible home, that affords them a level of independent living they may not otherwise enjoy.”
Service members and veterans with disabilities connected to their time in the military could be eligible for grants to either construct, purchase, or modify an adapted home. The current maximum grant amount is $100,896.
3.) Special Housing Adaptation Grant
The Special Housing Adaptation (SHA) grant was established to aid eligible applicants’ mobility within their homes. This pertains to veterans and service members living with injuries sustained from their time during active duty, such as severe burns, for example. If qualified, borrowers can receive up to $20,215, the current maximum.
4.) Temporary Residence Adaptation Grant
This enables veterans to make modifications to a dwelling utilized as their temporary living space due to any service-connected disability. To qualify for a Temporary Residence Adaptation Grant (TRA), veterans must meet the requirements for either aforementioned SAH and SHA grants. The former facilitates up to $40,637, while the latter is $7,256 based on the existing grant.
5.) New York State Homes for Veterans Program
Many state and local governments offer financial support for service members and their families purchasing a home. The State of New York Mortgage Agency (SONYMA) administers a Homes for Veterans Program to help first-time home buyers and other qualified applicants. Competitive interest rates and zero points or origination fees are just two advantages providing significant cost savings.
Proudly Supporting Our Nation’s
Military Service Members
When researching VA-backed loans and grants for a new home purchase, refinancing, or rehabilitation, it’s best to work with an authorized and experienced mortgage lender specializing in these programs.