For military families, the path to homeownership comes with its own set of questions…and a benefit unlike anything available to civilian buyers.
We recently sat down with Kevin Crooks, Business Development Manager at AAFMAA Mortgage Services LLC (AMS), to get answers to the questions he hears most from Members navigating the VA Home Loan process.
AMS: Would I be eligible for a VA Home Loan?
Kevin Crooks: A VA Home Loan is a mortgage benefit earned through military service. It is backed by the U.S. Department of Veterans Affairs, which means lenders can offer terms that would not be possible on a conventional loan, including no down payment, no private mortgage insurance, and more competitive interest rates.
In terms of who is eligible, the specific requirements vary depending on when and how long you served, so the first step is always to obtain your Certificate of Eligibility, which confirms your benefit.
Related: 5 Common Homebuying Myths Military Buyers Should Ignore
AMS: Speaking of surviving spouses, can they really use a VA Home Loan?
KC: Surviving spouses of servicemembers who died in the line of duty or from a service-connected disability are eligible to use the VA Home Loan benefit, and, in many cases, without paying the VA funding fee, which can represent thousands of dollars in savings.
The process looks similar to any other VA Home Loan, but there are specific documentation requirements, including a DD Form 1300.
I encourage surviving spouses to work with a lender like AMS that has specific experience with this part of the program, because the details matter and they deserve to get every bit of the benefit they have earned.
AMS: A lot of people think a VA Home Loan is a one-time benefit. Can you use it more than once?
KC: This is probably the single biggest misconception I encounter. The VA Home Loan benefit is not a one-time use. You can use it again and again throughout your life, as long as you meet the eligibility requirements.
The key concept here is entitlement. When you pay off a VA Home Loan and sell the property, your full entitlement is restored and you can use the benefit again as if it were the first time. But here is what a lot of people do not realize: you can also have more than one VA Home Loan at the same time if you have remaining entitlement. This comes up frequently for active duty families who still own a home at a prior duty station and need to purchase at a new location.
Related: Homebuying Season is Here. Are You Ready?
AMS: What is your advice for military families trying to buy during a PCS move?
KC: My top piece of advice is to start the mortgage process as early as possible, ideally before your orders are even finalized. Get pre-approved so that when you find a home you want to move on quickly.
I also tell borrowers to be realistic about what the VA Home Loan process requires in terms of the home's condition. VA appraisals have specific requirements, so working with a real estate agent who understands VA transactions is important. Not every home will pass, and you do not want to lose time on a property that was never going to work.
Finally, if you are buying from out of state or overseas, lean on technology. Virtual tours, remote closings, and digital document signing have made long-distance purchases much more manageable than they used to be.
AMS: What happens if your orders change after you are already under contract on a home?
KC: The first thing I tell borrowers is to communicate with the lender, the real estate agent, and the seller right away. From a loan standpoint, a change in orders can affect your debt-to-income ratio, your income calculation, and potentially the property itself if you are being sent somewhere entirely different.
We’re Here to Help
Thinking about buying, ready to start home shopping in earnest, or considering a refinance? An AMS Military Mortgage Advisor, a licensed mortgage loan originator, will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of affordable mortgages designed to meet your needs.
Ensuring Armed Forces Mutual Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today or give us a call at 844-422-3622!