If you are active duty military or in the reserves you should use your VA benefits to purchase a home for little or no money down. If you already own a home take advantage of current low mortgage interest rates to refinance your home loan and save money. Refinancing with a VA home loan can lower your interest rate and keep more money in your families pocket.
If you are considering joining the military, but are concerned about the financial impact it could have on your family, there are relief measures in place that can help. With the Servicemember Civil Relief Act a VA home loan can offer assistance to you and your family if you are called up. The Servicemember Civil Relief Act (SCRA) enables veteran borrowers to request relief if they are called up to active duty. It is meant to help ease financial and legal burdens for active duty military.
Servicemember Civil Relief Act Benefits
• Temporary relief from mortgage payments!
• Tax reliefs
• Interest rate caps
• Lease termination (you’re not stuck paying for a car you can’t drive while overseas)
• Protection from eviction
• Stay of judicial proceedings
Mortgage Loan Relief Qualifications
• Secure your mortgage before you join the military. If you are considering this as a career option buy or refinance your home now. If you refinance after you become active duty the mortgage relief portion of the SCRA will no longer apply to you.
• Own your home prior to starting your active duty service.
• You still own the property. In other words you can’t have deeded the property to a family member.
• Military service significantly impacts your financial situation.
The SCRA provides a variety of protections for active duty service members. The key is to act now. If you want to join the military, and buy a home, you need to make your home purchase before signing up. There are a variety of loan options available that require a small down payment. FHA home loans will let you purchase a home for as little as 3.5% down. With home values rising, and interest rates low, it is a fantastic time to complete your purchase. Once you have closed on your home loan, and moved your family in, you can sign up for active duty service and benefit from the mortgage protections within the SCRA.
The VA offers a variety of benefits to the men and women that serve our country. VA home loans are one of them. Qualified veterans or active duty service members can purchase or refinance a home, utilizing the VA guarantee. The VA will guarantee a portion of your home loan against default. They act as a sort of insurance to the lender issuing the loan, which can help you become qualified. It can also help you to purchase a home for zero down payment. If you are considering purchasing a home or refinancing speak with an experienced mortgage lender to find out which loan option is right for you. Remember the SCRA has specific rules regarding qualifying for mortgage relief so speak with your mortgage banker to discuss how you can make sure the relief will be available if and when you need it.
