There are numerous military veterans and
active-duty service members in the United States, and many need financial
assistance to purchase a home. The U.S. Department of Veterans Affairs, state
and local governments, as well as various foundations guarantee or offer
programs specifically designed to help veterans who are in this situation. Here
are a few options offered by the federal and local government designed to
promote active and non-active service members purchase a home.
- No down payment is required as long as
the sales price isn’t higher than the home’s appraised value.
- Better terms and interest rates are
offered versus loans from private banks, mortgage companies, or credit unions.
- The borrower can borrow up to the
Fannie Mae/Freddie Mac conforming loan limit on a no-down-payment loan in most
areas—and more in some high-cost counties. You can borrow more than this amount
if you want to make a down payment.
- There is no need for private mortgage
insurance (PMI). PMI is a type of insurance that protects the lender if you end
up not being able to pay your mortgage. It’s usually required on conventional
loans if you make a down payment of less than 20% of the total mortgage amount.
- Fewer closing costs, which may be paid
by the seller.
Dream Makers provides matching grants for the
down payment and closing cost assistance for active and non-active service
members. Here are the criteria to qualify for a Dream Makers grant.
- A first-time homebuyer or you have not
owned a home for the last three years, or you have lost your home through
divorce or disaster.
- The gross annual income of all
applicants used to qualify for a mortgage is no more than 80% of area median
income, adjusted for household size.
- Received mortgage pre-qualification or
pre-approval letter from any lender.
- All approved applications are valid
for 90 days after being submitted. Any applicant that has not closed on their
home within the 90-day period must reapply.
- All loans must have a 25 or 30-year
repayment term and a fixed rate.
Ohio Heroes Reward
The Ohio Housing Finance Agency’s rewards Ohio
residents who are active and non-active service members, first responders, and
teachers with a discounted mortgage interest rate. Here is the criteria
required to qualify for the Ohio Heroes reward.
- You meet debt to income ratios for
your loan type.
- You meet the credit score
- Conventional, USDA and VA Loans: 640
- FHA Loans: 650 or higher
- You work in one of the following
- Veterans, active-duty military members
or members of reserve components (including surviving spouses)
- Police officers, firefighters,
volunteer firefighters, EMTs, and paramedics
- Physicians, nurse practitioners,
nurses (RN and LPN) and STNAs
- Teachers (pre-K – 12th grade),
administrators and counselors
If you or your spouse is a veteran and you’re
looking to purchase a home, make sure you take advantage of the programs and
grants offered to you. To learn more about VA loans and grants, check out these
websites https://www.usa.gov/veteran-housing or https://myohiohome.org/ohioheroes.aspx.