What Spouses Are Eligible For A Va Loan
What if the service member passes away before he or she uses the benefit? Eligibility passes to an unremarried spouse, in many cases.
For the surviving spouse to be eligible, the deceased service member must have:
- Died in the line of duty
- Passed away as a result of a service-connected disability
- Been missing in action, or a prisoner of war, for at least 90 days
- Been a totally disabled veteran for at least 10 years prior to death, and died from any cause
Also eligible are remarried spouses who married after the age of 57, on or after December 16, 2003.
In these cases, the surviving spouse can use VA loan eligibility to buy a home with zero down payment, just as the veteran would have.
I Am A Veteran And Currently Own A Home
Even if you already own a home, there are substantial savings that Veterans and active-duty servicemembers shouldnt pass up. VA home loan benefits vary depending on your home purchase history, check the benefits below based on your mortgage history:
1. I already have a VA mortgage.
With a current VA mortgage, you have access to one of the greatest benefits of a VA home loan the ability to reduce your existing rate by refinancing easily and with little or no out-of-pocket expenses. A VA streamline refinance can be completed with minimal documentation requirements and often within 30 days. This can be especially helpful for Veterans who may have experienced a significant change in circumstances such as the loss of a job, bankruptcy, or a significant decrease in home value.
2. I own a home but did NOT use my VA benefits.
1 MGIC Rate Finder | Average savings calculated on a $250,000 mortgage and is based on elimination of a $198/month PMI premium for 12 years and an interest rate reduction of 0.25% . This equals a total savings of $41,112 compared to conventional loans.
2 . | It takes an average of 12.5 years to save up a 20% down payment on a median $259,000 home with a current personal savings rate of 5.6%.
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What Is The Veterans Mortgage Relief Program
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. Beside this, does the VA help with mortgage?
The Department of Veterans Affairs aims to help Veterans retain their homes or avoid foreclosure. If you are struggling to make your mortgage payments, speak with a VA loan servicer as soon as possible. Contact your nearest regional loan center to explore your options.
how much does the VA guarantee on a home loan? VA will guarantee up to 50 percent of a home loan up to $45,000. For loans between $45,000 and $144,000, the minimum guaranty amount is $22,500, with a maximum guaranty, of up to 40 percent of the loan up to $36,000, subject to the amount of entitlement a veteran has available.
Beside above, what are closing costs on a VA loan?
VA Home Loan Closing Costs and Fees: What to ExpectThe veteran can pay them out-of-pocket, or receive seller and/or lender credits to cover them. VA loan closing costs average around 1% 3% of the loan amount on bigger home purchase prices, and 3% 5% of the loan amount for less expensive homes.
Will the VA pay my rent?
If you meet the basic eligibility requirements, Veterans Inc. provides direct services and financial assistance to help search for housing, assist with initial rent costs, and pay for certain bills related to back rent or utilities. If you are a veteran in need of services, please call 800-482-2565.
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Forbearances For Va Loans
Homeowners with federally backed mortgage loans, including those with loans that are guaranteed or insured by the VA, are eligible for a forbearance, often called a “COVID-19 forbearance.”
In the wake of a natural disastercoronavirus falls into this categoryVA typically encourages servicers to offer help to struggling homeowners.
What Has President Biden Been Doing To Offer Mortgage Relief
According to a White House press release: “Shortly after taking office, the Biden-Harris Administration extended the foreclosure moratorium and mortgage forbearance enrollment period for homeowners with government-backed mortgages to provide relief to struggling homeowners.” Additionally, as part of President Biden’s American Rescue Plan $9.961 has been provided for the Homeowner Assistance Fund, encouraging loan modifications and payment reduction options on all federally backed mortgages.
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Mortgage Relief For Servicemembers
A new program was unveiled in June 2012 that could help tens of thousands of veterans and servicemembers who are struggling with underwater homes. The program expands the national mortgage settlement that the government previously reached with some of the largest banks, and it steps up enforcement of the Servicemembers Civil Relief Act .
These are key changes for servicemembers who often have to relocate more frequently than their civilian counterparts because of the demands of military life. About 33% of active duty personnel are required to relocate each year. These continuous moves can leave them more vulnerable to a drop in housing prices. This new program will help alleviate that pressure.
The government is particularly concerned about firms that required servicemembers to waive rights they have as members of the military before the firms would offer assistance. In some cases, servicemembers were advised to stop making mortgage payments, and then suffered harm for doing so.
The new relief is a joint effort of many agencies and departments, including the Federal Housing Finance Agency , the Consumer Financial Protection Bureau and the Department of Defense.
SCRA Relief
The key SCRA-related components of the program that offer relief to servicemembers include:
Permanent Change of Service
Increased Funding for the Veterans Housing Benefits Program
Summary
Mortgage Relief Programs For 2021
If youve had a temporary job loss or reduction in income, it can be hard to keep up with mortgage payments especially if you have an above-market mortgage rate thats keeping your payments artificially high.
The simple solution is to refinance into a lower interest rate and cheaper mortgage payment.
Thanks to rising home values, even homeowners who made a very small down payment or refinanced recently could be eligible for todays low-interest rates.
Even if you dont think youd qualify for a refinance, its worth talking to a lender. Many homeowners are eligible but dont know it yet.
Whats more, not everyone needs great credit or perfect finances to qualify for a refinance.
Select programs, like the government-backed Streamline Refinance, can help borrowers refinance with little, no, or negative home equity.
Even if you dont think youd qualify for a refinance, its worth talking to a lender.
Homeowners might be surprised at the amount of equity theyve gained in todays hot housing market. And with rates still near record lows, many borrowers can easily save hundreds every month.
Those savings could put some cushion back in your budget and seriously improve your personal finances.
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Mortgage Assistance Programs Every Veteran Should Know About
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In a Nutshell
If you are a US military service member, a veteran, or a surviving spouse you may have access to special mortgage assistance programs and grants that can be helpful in buying, refinancing, and modifying a personal home loan. These homeownership programs exist at both the federal and state level. Additionally, the Department of Veterans Affairs provides assistance and counseling if you have difficulty making mortgage payments. This article gives a brief overview of five mortgage assistance programs every veteran should know about.
If you are a US military service member, a veteran, or a surviving spouse you may have access to special mortgage assistance programs and grants that can be helpful in buying, refinancing, and modifying a personal home loan. These homeownership programs exist at both the federal and state level. Additionally, the Department of Veterans Affairs provides assistance and counseling if you have difficulty making mortgage payments. This article gives a brief overview of five mortgage assistance programs every veteran should know about.
Qualifying For A Va Loan With Part
You can qualify for this type of financing even if you have a part-time job or multiple jobs.
You must show a 2-year history of making consistent part-time income, and stability in the number of hours worked. The lender will make sure any income received appears stable. See our complete guide to getting a mortgage when youre self-employed or work part-time.
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What If You Have A Non
Federal regulators believe most non-government-backed lenders and loan servicers will adopt policies similar to those mandated by the CARES Act and subsequent legislation. To find out, contact your loan servicer, ask what programs it has in place to provide mortgage relief to homeowners impacted by the coronavirus outbreak, and follow any instructions you are given.
Although the CARES Act does not require private lenders to offer mortgage assistance, if you and your lender come to any type of loan modification agreement, then the law regarding not reporting reduced or paused payments to does apply to you.
If your mortgage forbearance is set to expire soon, then you may be able to request an extensionbut you must apply before forbearance ends.
Va Loans And Rental Properties
You cannot use a VA loan to buy a rental property. You can, however, use a VA loan to refinance an existing rental home you once occupied as a primary home.
For home purchases, in order to obtain a VA loan, you must certify that you intend to occupy the home as your principal residence.
If the property is a duplex, triplex, or four-unit apartment building, you must occupy one of the units yourself. Then you can rent out the other units.
The exception to this rule is the VAs Interest Rate Reduction Refinance Loan .
This loan, also known as the VA Streamline Refinance, can be used for refinancing an existing VA loan on a home where you currently live or where you used to live, but no longer do.
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Financial Help For Homeowners And Landlords
Forbearance is not the same as forgiveness. Forbearance only puts off the inevitable day when paused payments must be made up. Programs funded by the Consolidated Appropriations Act, 2021 and the American Rescue Plan Act of 2021 provide financial assistance to homeowners and landlords under two programs: the Homeowner Assistance Fund and the Emergency Rental Assistance program.
Minimum Service Required For A Va Mortgage
VA home loans are available to active-duty service members, veterans , and in some cases, surviving family members.
To be eligible, you need to meet one of these service requirements:
- Youve served 181 days of active duty during peacetime
- Youve served 90 days of active duty during wartime
- Youve served six years in the Reserves or National Guard
- Your spouse was killed in the line of duty and you have not remarried
Your eligibility for the VA home loan program never expires.
Veterans who earned their VA entitlement long ago are still using their benefit to buy homes.
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How Do You Get Mortgage Relief
To apply for any of these mortgage relief programs, youll need to get in touch with your loan servicer. Thats the company you send your mortgage payments to.
Your servicer is typically not the same lender you originally applied with . Not sure if you fall into that category? Use Fannie Maes and Freddie Macs loan lookup tools to check.
Additionally, theres still time to apply for mortgage forbearance if you havent yet done so.
FHA, VA, and USDA borrowers can sign up for a forbearance plan through September 30, while those with Fannie and Freddieowned loans have longer . In both cases, forbearance is available for up to 18 months total.
A final option to lower your mortgage interest rate and payments is a mortgage refinance.
Homeowners who are out of work or having financial difficulties may not qualify to refinance, in which case a loan modification may be the only option.
But for those who qualify, a refinance is typically the first plan of action. You can check your eligibility to refinance below.
If You Have Good Credit And 20% Down
A primary advantage to VA home loans is the lack of mortgage insurance.
However, the VA guarantee does not come free of charge. Borrowers pay an upfront funding fee, which they usually choose to add to their loan amount.
The fee ranges from 1.4% to 3.6%, depending on the down payment percentage and whether the home buyer has previously used his or her VA mortgage eligibility. The most common fee is 2.3%.
On a $200,000 purchase, a 2.3% fee equals $4,600.
However, buyers who choose a conventional mortgage and put 20% down get to avoid mortgage insurance and the upfront fee. For these military home buyers, the VA funding fee might be an unnecessary expense.
The exception: Mortgage applicants whose credit rating or income meets VA guidelines but not those of conventional mortgages may still opt for VA.
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Housing Help For Older Veterans
Find programs to help older veterans with a wide range of housing needs. This includes in-home care, assisted living, and retirement homes for veterans.
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Get help finding housing and care in a variety of residential settings. This includes nursing homes, assisted living, and medical foster homes.
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If you need in-home care so you can remain at home, the VA may be able to help. Call the VA Health Care Benefits number at . Or, contact the VA medical center nearest you.
Another option for some military retirees and other veterans is the Armed Forces Retirement Home . The AFRH has two locations: Washington, DC, and Gulfport, MS. Both offer recreation and wellness services including assisted living and skilled care.
How To Ask Your Va Lender For Va Mortgage Relief During The Coronavirus Pandemic
The Department of Veterans Affairs has instructions for those who need to claim mortgage relief on a VA mortgage. The first thing you will need to do is to locate your loan agreement and find the contact information for your mortgage.
It is entirely possible that the financial institution you borrowed from initially has sold your loan to another entity or servicer if so you will need to find out who is servicing your VA loan now.
Once you have located your loan servicers contact information, the VA advises borrowers to submit:
- A formal request for VA mortgage loan relief to the lender
- A formal certification that the borrower is experiencing a financial hardship due to the COVID19 emergency
The certification is likely to be done on the honor system. Borrowers must certify they have a hardship. Individual lender requirements may vary and depending on future guidance you may need to submit certain supporting documentation depending on the laws of your state, the lender, circumstances, and other variables.
At the time of this writing, no additional documentation is required for the lender to act but the VA may issue clarification or additional guidelines as the relief efforts continue.
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Va Loans Dont Allow A Prepayment Penalty
A VA loan wont restrict your right to sell the property partway through your loan term.
Theres no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home.
Furthermore, there are no restrictions regarding a refinance of your VA loan.
You can refinance your existing VA loan into another VA loan via the agencys Interest Rate Reduction Refinance Loan program, or switch into a non-VA loan at any time.
Hardest Hit Fund Programs
The US Treasury administers the Hardest Hit Fund, which provides aid to the states that were most impacted by the economic crisis. Each of these states have local agencies that help homeowners in various ways, including mortgage payment assistance for the unemployed, principal reduction, and transactional assistance. This helps people either afford the homes theyre in, or move to more affordable housing.
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I Am A Veteran And Want To Buy A Home
The VA helps active-duty servicemembers, Veterans, and eligible surviving spouses with mortgage benefits, including the following:
1. No down payment
It takes an average of 12.5 years to save up the 20% down payment required for a conventional home loan2. Eligible Veterans and active-duty service members can skip that step and become homeowners without waiting to save up thousands of dollars. In fact, the VA home loan program allows Veterans to purchase a home with as little as 0% down. With interest rates remaining at the lowest levels in two years, it just makes good financial sense to purchase a home.
2. Lower monthly payments
Because the federal government backs all VA mortgages, there is no need for private mortgage insurance on VA home loans with low or no down payment like other loan types. The average time it takes to eliminate PMI on a conventional mortgage is 10 years eliminating this requirement means a savings of almost $200 per month and $24,000 savings over the life of the loan.
3. Easy pre-qualification
In many real estate markets across the country, there is stiff competition between home buyers. One of the best ways to set yourself apart from other buyers is to get a VA pre-qualification letter. Not only will you know exactly how much you can afford and which VA home loan benefits you actually qualify for, but home sellers and real estate agents consider you a more serious home buyer than those without.
