Military Mortgages

Every family wants a piece of the American dream: a home of their own. Your military family may relocate often, but that doesn't mean you to give up the dream. In fact, buying and selling your homes throughout your military career can be quite profitable, in the right market.

The honorable men and women who have served in our armed forces have a special opportunity for homeownership, thanks to the Veterans Administration's GI Bill: VA home loans which offer mortgage discounts and benefits on Military, VA, FHA, or conventional loans.

VA home loans are made by private lenders such as banks, savings & loans, or mortgage companies, to eligible veterans who are ready to buy a home for their own personal occupancy. The VA will guarantee a maximum of 25 percent of a home loan amount - up to $104,250 - which means the maximum loan amount would be $417,000.

More than 25.5 million veterans and military service personnel are eligible for the benefit of VA home loan financing. Qualified veterans are those who served on active military duty and received a discharge other than dishonorable after a minimum of 90 days of military service during wartime, or a minimum of 181 continuous days of military service during peacetime. There is also a two-year requirement if the veteran enlisted and began service after September 7, 1980, or was an officer and began service after October 16, 1981. And there is a six-year requirement for National Guards and Reservists, with specific rules as to the eligibility of surviving spouses.

Simply put, your VA guarantee means the lender is protected against loss if you or a later owner fails to repay the loan; it replaces the protection the lender normally receives by requiring a down payment for favorable financing terms. Everyone benefits, especially the veteran who gets this access to very favorable loan terms and rates.