– Veterans benefits extend way beyond the ability to receive disability payments or attend school for free to get a secondary education after discharge from the armed forces.
Yet many veterans aren’t aware of the details defining their own additional benefits, especially when it comes to the real estate for military members to purchase when they wish to join the homeowner ranks.
And, there’re many ways for the personnel who have served in the armed forces to use their govt-granted benefits that don’t just fall into the home loan category.
To begin, individuals who belong to this group of home buyers would find that one main advantage they could enjoy is to get a veteran home loan with little or no money down.
Also, interest rates for veterans real estate loans are usually much lower than what the other folks who have not served their country are able to secure. Veteran mortgage loans are also not subjected to penalty fees if the borrower decides to attempt prepaying the loan, a condition that is not on the table for the non-combatants of the group.
In addition, the military home loan doesn’t only have to be used for the purchase of a residence, as the acquired funds can also go towards making improvements within an existing home such as upgrading to energy efficient equipment or installing re-enforcers onto the property’s foundation for better protection against the elements. Solar heating and solar cooling are other improvements that are commonly made when using a military home loan for reconstructive purposes.
To sweeten the deal even further, military employees who are granted the ability to receive a veterans home mortgage are not liable for mortgage insurance premiums that are due on a monthly basis for the non-veteran homeowners of the bunch.
Continuing, those who have served their country and are now in the market to buy real estate are automatically entitled to an appraisal of the property they are interested in – a step which is still mandatory for home buyers who do not qualify for veterans administration home loans, but one they have to arrange themselves as the automatic entitlement factor is not present for non-veterans.
Veterans can moreover use their military real estate benefits by choosing to refinance an old home loan instead of buying another piece of property and hence having to apply for a new loan altogether. A tactic such as this one is usually utilized by those who are merely wanting to reduce the rate of interest that is paid on the loan.
One of the biggest points of contention during the process for buying a home is how much both the seller and the buyer are going to take care of monetarily when it comes time to close the deal. However, a person with military status using the veteran home loan program is guaranteed to have limited buyer closing costs at the end of the transaction, which is just another plus to fighting on behalf of the United States.
Veterans Home Loan Benefits Also Include The Ability To Acquire A Special Thirty Year Mortgage
Veterans continue their homeowner benefits by having the choice of signing up for a 30 year mortgage loan – an arrangement that comes with more than one type of plan available for repayment.
What are the details of the different plans intended for the re-payment of a 30 year veteran home loan?
A fixed payment of the traditional type is the first of the three veteran mortgage plans. A constant interest rate is the theme of this arrangement. In addition, a fixed payment plan comes along with a a potential increase or decrease in fees for homeowner’s insurance and the taxes paid on the property, with the possible rate change dependent upon the economy of the time.
Graduated mortgage payments for the owner of the veterans real estate gives that person the chance to begin the payoff process with lower monthly amounts, until the loan reaches its sixth year – at which time the payments will level out to a constant consistent fee each month.
The third way to repay a 30 veteran mortgage is through a process called “growing equity mortgage.” This plan includes payments that will gradually increase in value, but the funds are applied only toward the principal loan amount so it can be paid off more quickly by the property owner.
Why are the armed forces soldiers so seemingly in the dark when it comes to the veteran home loan benefits to which they are entitled as a reward for enlisting in the armed forces?
It can be a case of not reading every word in the military contract prior to signing it; the small print that comprises the documents can be the cause as trying to painstakingly read it can easily lead to sore eyes; or the person in question just may not be concerned about his or her rights and benefits as a veteran because he or she staunchly believes that to become a homeowner is not a future possibility.
Whatever the reason, gaining knowledge about the house buying process is a surefire way to enjoy the benefits associated with military home loans, on top of eventually coming to the realization that owning a home is not such a far reaching dream after all.
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