Mortgage options for active duty military personnel and…

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If you are an active duty military member or veteran and are interested in purchasing a home, are having trouble meeting your mortgage payments or are interested in refinancing your current mortgage, you have several options at your disposal. Mentioned below are some mortgage programs that cater to homebuyers and homeowners in the military.

VA Home Loan Program

Operated by the US Department of Veterans Affairs (VA), the VA Home Loan Program is a guaranteed loan program for veterans and active duty personnel. Although you obtain a loan from a private lender, the VA endorses the loan with that lender. This means that if you ever have trouble making payments, the VA covers any losses the lender may incur. Essentially, a VA loan guarantee is like insurance that the VA provides to the lender. The benefits of the VA home loan program include a low or no down payment, no private mortgage insurance, a limit on closing costs, and no penalty fees if you pay off your mortgage early.

cal vet home loan program

Designed specifically for military veterans looking to buy a home in California, the Cal Vet home loan program boasts low or no down payments and low interest rates. Qualifying for a Cal Vat home loan is also easy. Cal Vet home loans are available in amounts up to $521,250. The program is available free of charge to California taxpayers. Interest rates are “locked in” from the date you apply. The Cal Vet Home Loan Program receives a loan guarantee from the VA. Eligibility for the Cal Wet home loan program has been expanded, so most veterans purchasing a home in California are now eligible. There are no prior residency requirements.

military endurance option

If you are experiencing financial hardship due to an injury sustained while on active duty, military forbearance may be an option. Military forbearance is an agreement between you and the lender that temporarily suspends or reduces your monthly mortgage payments during the forbearance period. The tolerance period can last up to six months.

The Military Forbearance Program enables you to overcome short-term financial problems and get the help you need to get back on your feet. After the moratorium period is over, you are responsible for repaying the reduced or suspended amount. You can pay it back by either extending the term of your mortgage and moving those payments towards the end, making a lump sum payment or adding a specific amount to your monthly payments.

interest rate reduction refinance loan

The Interest Rate Reduction Refinance Loan (IRRRL), also known as a Streamline or “VA to VA” loan, is a refinance loan that offers current VA mortgage holders the opportunity to take advantage of lower interest rates. To qualify for IRRRL, the new interest rate must be lower than the existing rate. For the IRRRL to be meaningful, your interest rate must be at least 1% below your current rate. If you’re refinancing from an adjustable rate mortgage to a fixed rate mortgage, however, the interest rate may increase.

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