The Top 3 Servicemember Benefits When Buying a Home
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.
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.
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.
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.
2. CalVet Home and Farm Loan
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.
The Cal Vet Loan is provided as a thank you to service members for serving our great nation.
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
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Low interest rates
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Low costs - A 1% origination fee. There are no hidden fees.
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Manual Underwriting -Every file is approved by an underwriter.
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Timely closing - Closing a Cal Vet loan on time is of utmost priority.
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Farm loans for qualified veteran
3.Property Tax Savings
Did you know that there are multiple property tax exemptions for Veterans?
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.
There is also a property tax exemption for disabled veterans or an unmarried widow of a deceased disabled veteran.
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.
These benefits for servicemembers are well deserved and help save money when buying a home.