Benefits Available for Spokane Area Veteran and Military Homebuyers

Benefits Available for Spokane Area Veteran and Military HomebuyersWith the presence of the Air Force Base in Airway Heights and other military installations, Spokane County has a significant number of active military members and veterans. We want to take a minute to thank all of our community members who give every day and have given their lives in service to our country and uphold our freedoms. 

We would like to highlight the homebuying benefits available to military and veterans to help you discover your options for purchasing a home in the Spokane area. 

VA Loan Program

The VA Loan Program was established in America in 1944. Since that time the Department of Veterans Affairs has secured more than 21 million loans for home purchases to enable veterans, military, and spouses to purchase a home. A VA Loan is a solid mortgage product offering benefits that include no down payment requirement, lower interest rates, lower closing cost requirements, no requirement to carry mortgage insurance, and lesser credit score requirements. 

The use of VA Loans has greatly increased in recent years. This program enables veterans and active military who may not qualify for traditional loan products to qualify and purchase a home. Some active military and veterans have made an assumption that there is too much red tape associated with a VA Loan and ignore the benefits available to help. 

Eligability for a VA Loan

Service members and former members of the military are eligible to utilize the trustworthy and solid VA Loan program if they have served 90 consecutive days on active duty during wartime, have served 181 consecutive days of active duty during peacetime, or have 6 or more years of service in the National Guard or Reserves. Some spouses of military members who have passed during their line of duty or as a result of a service-related disability might also be eligible for a VA Loan. You need to obtain a certificate of eligibility from a VA Lender. 

Other Benefits Offered with a VA Loan

Ability to Use Housing Allowance

Some Active-duty military members receive a monthly housing allowance. This allowance can be used to qualify for a VA Loan. Lenders are able to count a housing allowance as effective income when applying for a home loan. this can help service members to afford home ownership. The basic housing allowance is based on the location of duty, the pay grade, and the family size of a service member. 

Power of Attorney and Occupancy Exceptions for Deployment and Assignments

If a service member is on deployment or special assignment taking them to another location the service member's spouse can sign with power of attorney and a spouse or children can fulfill occupancy requirements of the loan for the home. This allows a military family to establish a permanent home without being required to pick up and move to several locations when their military family member is reassigned or deployed to another location. 

Financial Protection

Life brings financial challenges for all homeowners including veterans and active military members. The Service Members Civil Relief Act provides protection for active servicemembers and families. This act provides protection involving interest rates, eviction, foreclosure, income tax payments, and more. 

Military personnel are able under this act to cap interest rates at 6% for pre-service debts while they are actively serving. The act also requires a lender or loan servicer to seek a court order to be able to foreclose on a home purchased with a VA Loan by an active duty military member. This stands during their time of service and up to nine months after active duty. 

The VA offers foreclosure avoidance help to homeowners utilizing a team of financial experts that work with lenders and servicers in the representation of active service members and veterans to find alternatives to foreclosure. These services have helped more than half a million homeowners stay in their homes in the recent past. 

If you are an active military member or veteran in Spokane we are here to help you find a home you will love. Contact us any time with any greater Spokane area real estate needs.  

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