Today we honor the veterans that have sacrificed for this country. To help honor these sacrifices, special programs were put in place to aid vets in getting and keeping a home. Unfortunately, not all veterans know these programs exist. Even for those who do, it can be confusing to determine which option matches their situation.
To help sort out some of the confusion, here are a few of the most common home programs that vets might be interested in. As requirements and availability can change over time, be sure to find out more before attempting to apply for any specific program. (We have awesome lenders we regularly work with that specialize in working with Veterans, just ask us).
VA Home Loans
One of the most well-known and commonly used home programs for vets are VA home loans. These loans are subsidized by the Veterans Administration itself, similar to HUD home loans or rural loans subsidized by the Department of Agriculture. Thanks to the VA subsidy, vets can qualify for better-than-average interest rates and may be able to reduce or eliminate down payments or closing costs as well. Houses must meet the livability requirements of the VA to be purchased with a VA home loan, so make sure you use an agent (hi there!) and lender (got that too) that are familiar with some of the not so obvious requirements to keep things from going sideways.
One problem that vets sometimes face is getting behind on mortgage payments and running the risk of losing their home. The VA offers loan forbearance programs that can help with this. While this doesn’t serve as loan forgiveness, the forbearance does temporarily stop repayments to give veterans more time to catch up. There are no penalties accrued during the forbearance period – and pending foreclosures won’t move forward while the loan is in forbearance. Once the forbearance period ends, the vet can begin making payments again at their normal rate.
VA-backed loan modifications are another option for vets that are struggling with their mortgage payment. These modifications can make changes to the interest rate, interest type or even the repayment period of the loan to reduce the amount of the monthly payment. There are a few different types of loan modifications available for vets ranging from basic loan refinancing to specialized repayment plans designed to keep vets in their homes when times are tough. The specific terms of the modification will depend on the specific program or plan that the veteran uses to modify their loan.
In-Home Care Programs
For veterans who were injured in service or who experience other chronic health issues, the VA offers programs to aid in getting in-home care. These programs pay out directly to the care provider and may also cover the cost of specialized care equipment or home modifications that are necessary to help the vets get through their day. These programs may be a good option for injured vets who need minor remodeling for medical reasons but who are unable to get it done on a fixed income.
VA Disability Status
It is important to point out that some VA programs require a veteran to have disability status before they can qualify. Disability through the VA can take a while to certify, so vets who have ongoing mobility or health issues should apply early before applying for other programs. Some programs may have options available while a disability decision is still pending, but there are at least a few VA programs that can’t do anything for you unless you’re already certified as disabled by the VA.
Finding the Right Program
If you’re struggling to navigate the complexities of some of these programs, we'd be happy to connect you to local mortgage and loan experts out there who can help you. We are ready to help!