Losing someone that you love is never easy. This is especially true for surviving spouses of service members who chose to live an honorable life by serving our country.
While the loss is difficult for families, the U.S. government does provide benefits, such as VA loans for surviving spouses, that can help you to move forward with your life.
You may be eligible for this type of loan if you survive a spouse that died during active service, or later from a service-related injury. You may also be eligible if you survived a spouse that is classified as being MIA or a POW.
Being eligible to buy a home with this type of loan offers several benefits that make it worth using this opportunity.
VA Loans for Surviving Spouses: Buy a Home With No Down Payment
Whether you are newly widowed, or have been a surviving spouse for several years, you may still have trouble coming up with a down payment. Trying to live on a single income tends to make it hard to save for a home purchase.
Lenders require down payments on homes, to prove that you have the ability to manage your finances, and can handle the mortgage payments in the future.
With a VA home loan, lenders accept your military survivorship status as proof of responsibility, which means that you can get the house that you want even if you have not saved up a large down payment.
Avoid Having to Pay Private Mortgage Insurance
In most cases, you must pay private mortgage insurance (PMI) if you do not put a 20% down payment on a home. With a VA guaranteed loan, you do not have to make a down payment or pay PMI. Since PMI can potentially cost hundreds of dollars a month, the savings from this benefit make your mortgage payment more affordable.
Take an Exemption From the VA Funding Fee
Most people must pay a funding fee when they take out a government-backed home loan for service members. This funding fee is meant to offset the cost to taxpayers for providing the backing for loans, and the amount varies, depending upon the type of loan a person takes out, and the branch of military in which they serve.
As a surviving spouse, you get an exemption from having to pay this funding fee. Since the funding fee rates average around 2%, this can save you a substantial amount of money.
Pre-Pay Your VA Mortgage Loan Without Penalties
Certain types of loans require you to pay a penalty fee to the lender if you pay the house off early. Depending upon the arrangement, this can be extremely costly during a time when you want to sell you home to buy a new one.
When you use this benefit, you don’t have to worry about prepayment penalties. This gives you greater flexibility over how you handle your finances and handle events such as selling the home.
As the surviving spouse of a service member, you are afforded certain benefits from the government that can help you buy a house for yourself or to provide shelter for your children.
Obtaining a VA loan is a relatively simple process, but it does require that you complete certain steps to prove your eligibility. The Highly Motivated Truly Dedicated Vercellino Team can help you navigate this process, so you can begin to enjoy the benefits such as being able to get a home with no down payment.