While the VA loan program allows members of the military to buy a home with no down payment, some of these buyers may still face challenges with closing costs or other related expenses.

Numerous organizations and state programs provide homebuyer assistance to help alleviate this burden. 

While service members are eligible for any of the 2,400-plus U.S. homebuyer assistance programs, we found there are 49 programs offering up to $117,000 in assistance specifically developed to help our military community members build, buy or make accessibility-related home renovations. Additionally, there are 211 programs that waive first-time homebuyer requirements for Veterans and military personnel. 

In honor of the sacrifices made by the courageous members of the U.S. Armed Forces, this Veterans Day we’re highlighting five affordable homeownership programs designed for military buyers:

City of Westlake Housing Assistance Purchase Program  

• The City of Westlake Housing Assistance Purchase Program offers up to $60,000 in the form of a deferred, 10-year forgivable loan, with 10% of the loan amount being forgiven annually, except the first year wherein 5% will be forgiven. The program is open to first-time and repeat buyers, and Veterans of all branches of the military can qualify for an additional 3% of the purchase price. Applicants earning up to 140% of the area median income (AMI) are eligible and there are no purchase price limits.

Florida Hometown Heroes Housing Program

• Eligible borrowers for the Florida Hometown Heroes Housing Program from the Florida Department of Veterans Affairs receive up to 5% of the first mortgage loan amount (up to a maximum of $35,000) in down payment and closing cost assistance in the form of a 0%, non-amortizing, 30-year deferred second mortgage. To qualify, homebuyers must connect with a participating loan officer, have a minimum credit score of 640, provide certification of active military or Veteran status, and meet the income threshold for their county.

NeighborWorks Columbus – Hallock Soldiers Fund

• The NeighborWorks Columbus Hallock Soldiers Fund offers Veterans and active duty soldiers up to $5,000 in a deferred, zero-interest, five-year forgivable loan. There are no income limits or price restrictions. Applicants must be first-time homebuyers (have not owned a home in three years). Homebuyer education by NeighborWorks Columbus is required. 

Utah Veteran First-Time Homebuyer Grant

• The Utah Veteran First-Time Homebuyer Grant supports active military and Veterans who have retired in the past five years with a $2,500 grant that can be used toward a down payment, closing costs or other mortgage expenses. Applicants must be purchasing their first home in Utah, but may still be eligible if they previously owned property in another state. Grant recipients are permitted to work with any lender authorized to originate mortgages in the state of Utah and may choose any conforming loan program, including VA, FHA, Fannie Mae or Freddie Mac loans. 

Washington State Housing Finance Commission (WSHFC) Veterans Down Payment Assistance Loan Program

• The WSHFC Veterans Down Payment Assistance Loan Program provides financial support for Veterans (honorably discharged), honorably discharged former members of the Washington National Guard and Reserve, and military spouses who never remarried and dependent children of deceased Veterans. Program participants can receive up to $10,000 and a 3% mortgage rate. Even though DPA must be repaid, payments can be deferred for the lifetime of the loan (up to 30 years). Borrowers must be first-time homebuyers or buying in a targeted area. This program also can be combined with WSHFC’s Home Advantage or House Key first mortgage loan programs.

These initiatives, and many more like them nationwide, provide our servicemen and servicewomen with the opportunity to achieve affordable, sustainable homeownership on the homefront. 

Looking to purchase a home?  Find down payment programs in your area today and see if you’re eligible!

May is Military Appreciation Month, a time we set aside to honor and recognize the contributions and sacrifices of the men and women who have served and are currently serving in the U.S. Armed Forces.

In addition to Armed Forces Day (Saturday, May 18, 2024) and Memorial Day (Monday, May 27, 2024) this month we’re celebrating Silver Star Banner Day (May 1), VE Day (May 8), Military Spouse Appreciation Day (May 10, 2024), and Maritime Day (May 22). 

Using Your Entitlement

One benefit of military service is the VA home loan, a type of mortgage guaranteed by the U.S. Department of Veterans Affairs and issued by private lenders. For those able to qualify, VA home loans offer three distinct advantages for buying or refinancing a home:

• No Down Payment — with a VA home loan you can put zero down (although there may be advantages to making a down payment)
• Lower Payments — VA loans offer competitive interest rates with no private mortgage insurance (although a funding fee is required unless the applicant meets certain conditions)
• Easier to Qualify — VA loans can provide homeownership opportunities for veterans and servicemembers who might not qualify for conventional financing

In addition to saving money with a VA loan, you can often qualify for down payment assistance that can be used in a multitude of ways to make buying a home more affordable.

Finding Assistance

Down Payment Resource maintains a database of all 2,300+ assistance programs that can be searched for free. Within this extensive resource, about 40 programs include options for active-duty servicemembers, 51 target veterans, and 13 are open to surviving spouses. 

Each program is unique in how financing is structured and what you’ll need to qualify. For most programs you’ll need a minimum credit score of 620 or higher and an income that meets the program’s requirements. Many programs also consider your debt-to-income ratio (DTI), which is the percentage of your gross monthly income you use each month to cover the cost of auto loans, credit cards, student loans and other recurring debt.

Some programs are restricted to first-time buyers, although this requirement is often waived for servicemembers and Veterans, and many will require buyers to complete a homeowner education course.

A Closer Look at Three Programs

To give you an idea of what’s available, we looked at representative programs from our database, targeting segments of the military.

Active Duty

The City of Greensboro’s Housing Connect GSO’s Homebuyer Assistance Program is a source of financial assistance for low- and moderate-income first-time homebuyers. One of its subprograms focuses on assistance for Public Service Heroes, including active duty servicemembers and veterans, National Guard members and those in the Coast Guard. To qualify, you do not need to be a current resident of Greensboro (NC) but you must be purchasing a new or existing home within the city limits. Additionally, your income needs to be above 80% and below 120% of the area median income. Accepted applicants receive up to $15,000 toward their home purchase, with a $10,000 bonus available to those buying in a designated reinvestment or redevelopment area. 

For more information, visit the program website.

Veterans

The City of Westlake (FL) Housing Assistance Purchase Program is an affordable and workforce housing assistance purchase program to maintain the economic and social sustainability of housing supply within the city limits at various income limits. Veterans, defined as those who served in the active military and honorably discharged or released, can qualify under this program for a 10-year deferred loan of up to $60,000 in assistance based on income, plus they may qualify for additional 3% of the purchase price to be used toward the home purchase. There is no maximum home price but buyers may have incomes of no more than 140% of the HUD AMI.

For more information, visit the program website.

Veterans & Surviving Spouses (Veterans, Active Duty & Gold Star Family members)

The Atlanta Neighborhood Development Partnership (ANDP) renovates properties to sell to low- to moderate-income homebuyers. Its Veterans Program offers up to $15,000 in homebuyer assistance toward the purchase of affordable new and newly renovated homes in the Atlanta region. These homes listed for sale have a two-week “first look” period when only offers from veterans or active duty buyers are accepted. To qualify, you must not own another home and purchase the ANDP home as your primary residence. You do not need to be a first-time buyer. You will need an income at or below 120% of the AMI and to complete a HUD-approved homebuyer education course. Veterans interested in purchasing a home through the ANDP Veteran Program are required to use one of the program’s approved lenders. 

For more information, visit the program website.

Looking to purchase a home?  Find down payment programs in your area today and see if you’re eligible!

DPR reports on programs from its national down payment assistance database for Veterans Day and Military Family Appreciation Month

ATLANTA, Ga., Nov. 10, 2023 — Down Payment Resource (DPR), the housing industry authority on homebuyer assistance program data and solutions, is highlighting homebuyer assistance programs to support Veterans, service members and their surviving spouses in conjunction with Veterans Day and Military Family Appreciation Month, both observed in November. While service members are eligible for any of the 2,200-plus U.S. homebuyer assistance programs, DPR found there are 61 programs offering up to $120,000 in assistance specifically developed to help them build, buy or make accessibility-related home renovations.

According to the Urban Institute, 78 percent of Veteran households were homeowners, 14 percentage points higher than the total population. Active-duty service members, who are often relocated every few years, had a homeownership rate of 43 percent. Military families are not only challenged by frequent relocation (Permanent Change of Station or PCS orders) but are struggling financially in a housing market with rising home prices and mortgage interest rates the highest seen since 2000. Results from the Blue Star Families’ Military Family Lifestyle Survey indicate that housing costs and relocation issues have become increasingly stressful and expensive for service members in recent years, making assistance with down payment and other purchasing costs even more essential.

An analysis of the 61 programs showcases the range of assistance available to promote homeownership among Veterans, active-duty service members and their surviving spouses:

• Financial assistance range: The programs offer homebuyer assistance ranging from $2,000 to $120,000.
• Program types: The homeownership assistance program types consist of 24 second mortgage programs, 18 affordable first mortgage programs, 15 grants, and one each below market rate (BMR)/resale restriction program, combined assistance program, voucher program and other assistance type.
• Repayment features: Twenty-four programs offer forgivable assistance, provided that all program conditions, such as owner-occupancy, are met. Fifteen programs are given as gifts with no strings attached provided eligibility criteria are met. 
• Program eligibility: Thirty-five programs are for first-time buyers, while 34 are open to repeat buyers or provide a waiver for service members and Veterans.

“Having assistance to buy now, even when interest rates seem high, can help our service members start to build equity, enjoy a sense of community, and have an asset they can keep or sell if they receive PCS orders,” said DPR Founder and CEO Rob Chrane. “We are extremely grateful to our Veterans, service members and their families and hope these programs can unlock the doors to homeownership and all the benefits it brings.”

Individuals can search for their homebuyer assistance program eligibility for free at https://downpaymentresource.com/are-you-eligible/. 

Methodology:

DPR produced homebuyer assistance program findings by analyzing its DOWN PAYMENT RESOURCE® database for programs with incentives for people with disabilities. The DOWN PAYMENT RESOURCE® database tracks the funding status, eligibility rules and benefits of all U.S. homebuyer assistance programs using data sourced from more than 1,300 housing finance agencies (HFAs), municipalities, nonprofits and other housing organizations. Homebuyer assistance programs of all types are tracked, including down payment and closing cost assistance, Mortgage Credit Certificates and affordable first mortgages.

About Down Payment Resource:

Down Payment Resource (DPR) is the housing industry authority on homebuyer assistance program data and solutions. With a database that tracks more than 2,200 programs and toolsets for mortgage lenders, multiple listing services and API users, DPR helps housing professionals connect homebuyers with the assistance they need. DPR frequently lends its expertise to nonprofits, housing finance agencies, policymakers, government-sponsored enterprises and trade organizations seeking to improve housing affordability. Its technology is used by five of the top 10 retail mortgage lenders by volume, three of the four largest real estate listing websites and 500,000 real estate agents. For more information, https://downpaymentresource.com/.