Across the country, service members in all military branches, reservists and National Guard members are returning to a civilian lifestyle. These veterans are now seeking educational opportunities, housing and work options while reconnecting with friends and family members. The transition can be tough, especially when taking stoke and calculating your present net worth and having to stretch your dollars to pay for all the desired things in life.
Fortunately, veterans can find financial help with VA loans. These loans offer incredible benefits to veterans and are low risk for lenders. Yet many people are unaware of these loans being available to them or what they can be used toward. Here are 5 important aspects you should know about a VA loan.
You Can Have More Than One VA Loan at a Time
You don't have to squirrel away the VA loan option for a rainy day or for an emergency if you are eligible for it. You can loan shop for the desired loan amount to purchase a home and then re-use the loan once the entitlements become restored. You even have the option of getting two VA loans at once.
This advantage is based on how much of your entitlement was used for the first loan and how much of the loan has been repaid. There are two entitlements you may be eligible for: the basic entitlement that is currently $36,000 for loans up to $144,000, and an additional entitlement for loans over $144,000 depending on the county you live in.
So if you only use part of the VA loan entitlement, you still have the remainder to use. The VA loan can also be restored again if you pay back the VA loan and sell a home. If you don't want to sell the house but you pay back the loan, you can get the one-time restoration on your entitlement.
Help Disabled Vets Renovate Homes for Medical Reasons
The VA loan program can also be used in conjunction with Adapted Housing Grants for eligible veterans who are disabled and need to purchase or renovate their homes due to their medical finance needs. Since it is a grant, it is tax free and the money doesn't have to be paid back. Also, any out-of-pocket expenses you make toward home improvements for medical reasons may be deductible on your federal income taxes if exceeding 10% of your AGI (adjusted gross income).
The Benefits Will Never Expire
It doesn't matter how long you have been out of the military service. If you meet eligibility requirements for a VA loan, you can still reap in those benefits. So you can buy a home or finance your education with a VA loan.
Spouses of Military Members May Apply for VA Loans
VA loans are not restricted to just military members, reservists or National Guard members. Spouses (as well as dependents) of fallen military members can also take advantage of this loan program. The eligibility requirements will be based on the length of time that the military member was in service and their duty status.
There Are Additional Benefits to VA Loans
There are many other benefits that fall into the VA loan program. In addition to the Adapted Housing Grants that can be used in conjunction with VA loans to build or modify a house based on medical requirements, you can take advantage of the Interest Rate Reduction Refinance Loan.
This loan can help lower your interest rate on your existing VA loan. Native American veterans can obtain the Native American Direct Loan to purchase, build or modify a house that is placed on Native American trust lands.
There are a range of grants and loans available for veterans and their spouses. Contacting a qualified loan officer who is knowledgeable about VA loan programs can help with financial planning that will work best based on your situation.