When looking to buy a home, it makes sense to maximize your buying power and reduce overall costs. Luckily there are 3 fantastic programs for qualified servicemembers when buying a home.

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1. VA Loan

The VA Loan is a widely known benefit for service members. It allows a home buyer to get a loan with no down payment and competitive interests rates.

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Here are some great aspects of the VA Loan:

~ The VA Loan allows a home buyer to get a loan with no down payment and competitive interests rates.

~Higher allowable DTI (Debt to Income Ratio), typically 41%. This allows you to get a more expensive home despite debt.

~No pre-payment penalty.

~No PMI (Private Mortgage Insurance) , saving you lots of money.

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 One potential downside to the VA Loan is that some sellers do not like working with buyers when using a VA Loan due to more stringent inspections. Still, the VA Loan is a great benefit for qualified buyers.

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2. CalVet Home and Farm Loan

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 The Cal Vet Loan is a California state agency that can provide a residential or farm loan benefit to qualified returning veterans and their families.

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The Cal Vet Loan is provided as a thank you to service members for serving our great nation.

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Funding for the loans is provided by California state voter approved bonds, which allows typically a lower rate than conventional and other government loans. Cal Vet Loan

• Low interest rates

• Low costs - A 1% origination fee. There are no hidden fees.

• Manual Underwriting -Every file is approved by an underwriter.

• Timely closing - Closing a Cal Vet loan on time is of utmost priority.

• Farm loans for qualified veteran

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3.Property Tax Savings

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Did you know that there are multiple property tax exemptions for Veterans?

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California provides a $4,000 real or personal property exemption for 1)Honorably discharged veterans or 2)Spouse or parent of a deceased ,honorably discharged veteran.

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There is also a property tax exemption for disabled veterans or an unmarried widow of a deceased disabled veteran.

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The exemption is only available on a veteran’s principal residence. There is a basic $100,000 exemption or a low income (52,470) $150,000 exemption.

 

To qualify the veteran must be: 1. Blind in both eyes, 2. Lost the use of 2 or more limbs or/and 3. Qualified as 100% disabled.

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These benefits for servicemembers are well deserved and help save money when buying a home.

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