Veteran Housing Assistance Options: Grants, Loans And Programs
Author:
Kevin GrahamOct 5, 2024
•9-minute read
Our nation’s veterans risked the ultimate sacrifice in order to ensure the safety and security of all Americans. In return, they deserve all the thanks and resources we can provide.
Among the many programs available, there are various forms of veteran housing assistance. VA loans offer one of the most affordable financing options available anywhere. There are also grants for veterans who need adapted housing as a result of a service-connected injury and options for those struggling to find affordable housing.
Veteran Mortgage Loans
Let’s begin by talking about one of the best mortgage options out there: VA loans. Offered through the Department of Veterans Affairs, not only is this usually a zero-down payment option, but it’s available to the broadest audience of any program we’ll talk about. The loan options are available to any veteran, active-duty service member, reservist or National Guard personnel in any branch who meets minimum service requirements.
There’s a funding fee that’s paid at closing or built into the loan amount. Service-time requirements are based on both when you served as well as your service status. Both funding fee and service-time requirements are waived if you’re receiving VA disability or the surviving spouse of a veteran who passed in the line of duty or who had a service-connected disability.
Purchase Loan
A purchase loan from the VA allows you to buy a single-family home with up to four units. Additionally, you can buy a condo as long as the project is VA-approved or use your loan to purchase a manufactured home.
Although Rocket Mortgage® doesn’t offer these at this time, you can also use VA loans to build a new home or renovate a home you’re purchasing.
Requirements
The VA doesn’t set specific requirements regarding credit score, but lenders typically do. Rocket Mortgage requires a qualifying credit score of 580 or better. Your house payment can’t comprise more than 38% of your overall debts and your debts can’t exceed 45% of your monthly income.
It’s worth noting that there’s more flexibility in terms of debt-to-income ratio (DTI) if your score is 640 or higher, depending on the size of your down payment, if any.
VA Cash-Out Refinance
A VA cash-out refinance involves converting the existing equity in your home into money that can be used for home improvements, consolidating debt or whatever else you might wish to do with it. The key difference between VA loans and most cash-out refinances is that you can convert the entire value of your home to cash if you qualify.
Requirements
Lenders will have different requirements, but we can speak to Rocket Mortgage. Taking out the full amount of your equity in cash requires a 620 credit score with 45% DTI. Otherwise, you have to leave 10% equity in the home when refinancing. There’s more DTI flexibility if you’re score is 640 or better.
VA Rate-And-Term Refinance
The rate-and-term refinance keeps your mortgage balance the same but allows you to refi for the purposes of lowering your rate and changing your term. You would use this particular option if you were going from another type of loan like a conventional or FHA loan