For military veterans, making the transition from military to civilian life can be daunting with many things to consider. After a career of moving around a lot, it is understandable that many military veterans might be interested in buying a home and putting down roots once and for all. But this Independence Day, maybe owning a home will allow you to have the financial freedom that you’ve been hoping for.
If you are a military veteran, or if you will be soon discharged from the service and you plan to transition to civilian life, you may have many questions about owning a home and whether or not it might be a possibility for you. Check out the most frequently asked questions for veteran home ownership hopefuls answered by our home ownership experts!
What are the Benefits of Owning a Home as a Military Veteran?
As a member of the military, you may have spent your time in service moving around from place to place. Buying a home allows you to settle down, put down roots and stay in one place for the long term. Owning a home rather than renting also has the following benefits:
- Many tax benefits are available to homeowners
- Owning a home helps with building your wealth in real estate
- Military veterans can often receive special financing options through VA loans and other programs
Are There Any Special Programs to Help Veterans Buy Homes?
Military veterans have many options when applying for home loans. Aside from conventional loans, veterans may also qualify for VA loans and FHA loans which may have more lenient down payment requirements and lower interest rates.
Can I Afford a Mortgage Payment?
Many military veterans count themselves out of the housing market because they assume that they cannot afford a mortgage payment. However, in many cases and in many housing markets, the cost of a mortgage is less than the cost of rent! If you are unsure if you will be able to afford a mortgage payment, the NC Housing Finance Agency offers home ownership calculators at www.nchfa.com that can help you determine what your monthly mortgage might be.
What if I Don’t Have Enough Savings for a 20 Percent Down Payment?
It is a common myth that all mortgages require a 20 percent down payment. In many cases, you can own a home with a down payment of less than 5 percent! There are many programs available to military veterans that can help with down payment assistance, including the NC Home Advantage Mortgage™ from the NC Housing Finance Agency that can provide 100 percent financing with down payment assistance to help you get over the down payment hurdle. This mortgage can be used with VA loans as well as FHA, USDA and conventional loan types.
If buying a home after a military discharge seems like the right option for your family, the North Carolina Housing Finance Agency has resources that can help military veterans afford to purchase a home. Learn more at www.nchfa.com/home-buyers.
