Veterans, active-duty military members, and real estate professionals have various valuable tools and programs to help them achieve their homeownership goals and/or develop their careers in the real estate industry.
These programs offer educational resources, financial benefits, and specialized support to meet the unique needs of veterans and those who serve them.
Real Estate For Veterans: Organizations and Programs
CCIM Institute Foundation Veterans Scholarship Program: Established in 2020, the CCIM Institute Foundation Veterans Scholarship Program supports U.S. military veterans by providing educational funding for careers in commercial real estate. Eligible veterans can apply for scholarships up to $15,000 for non-degree courses, including certification programs from the National Association of REALTORS® affiliates, such as CCIM Institute, REALTORS® Land Institute, IREM, and SIOR. Active-duty military within 12 months of service completion can also apply.
Military Relocation Professional (MRP) Certification: The Military Relocation Professional (MRP) certification, offered by the National Association of Realtors (NAR), is designed for real estate professionals assisting military service members and veterans. It educates REALTORS® on providing appropriate housing solutions and maximizing benefits for these individuals and their families. NAR also works with the Department of Veterans Affairs (VA) to ensure veterans are not paying unnecessary fees and that they can purchase the home they wish.
Veterans Association of Real Estate Professionals: Established in 2011, the USA Homeownership Foundation, also known as the Veterans Association of Real Estate Professionals (VAREP), is a non-profit 501(c)(3) and HUD-approved housing counseling organization dedicated to increasing sustainable homeownership, financial literacy education, VA loan awareness, and economic opportunity for active-duty and veteran communities.
VAREP also administers an industry-recognized course, the Military and Veteran Housing Certification (MVHC) course, designed to offer a comprehensive understanding of the VA’s Home Loan Guarantee Program to empower attendees to embrace the VA loan program instead of shying away from it. In Reno, Nevada, Jack Castella, a Dickson Realty agent, is MVHC certified to help effectively serve the housing needs of our military and veteran communities
VREB Network: Founded by a veteran, the VREB Network offers a comprehensive suite of services for veterans, active-duty military personnel, and their spouses. Members can access VREB University for home-buying and selling courses, earn up to $7,500 in rewards based on transaction costs, and benefit from partnerships with top veteran-centered agents and lenders.
What Is a VA Loan?
A VA loan is a mortgage option designed for veterans, active-duty military members, and certain surviving spouses. Although the Department of Veterans Affairs (VA) doesn’t directly issue these loans, it guarantees loans provided by VA-approved lenders, such as Dickson Realty’s mortgage partner, Omega Mortgage Group. This guarantee reduces lender risk and provides veterans with unique financial advantages.
The primary goal of a VA loan is to make home financing more accessible for veterans, with benefits like no required down payment, competitive interest rates, and limited closing costs.
Advantages of a VA Loan
Using a VA loan provides veterans with multiple financial advantages that aren’t available with most conventional mortgage options:
- No Down Payment Required: In most cases, veterans can secure a VA loan without needing a down payment, reducing the initial financial barrier to homeownership.
- No Private Mortgage Insurance (PMI): Unlike conventional loans, VA loans don’t require PMI, saving borrowers hundreds of dollars each month.
- Limited Closing Costs: The VA limits the fees and costs veterans must pay, ensuring the process remains affordable.
- Flexible Credit Requirements: Veterans with lower credit scores or previous financial issues like bankruptcy may still qualify for a VA loan.
- Additional Benefits for Disabled Veterans and Surviving Spouses: Disabled veterans may be exempt from funding fees and qualify for grants to make accessibility modifications to their homes. Depending on specific circumstances, surviving spouses may also be eligible for VA loan benefits.
Veterans may use their VA benefits multiple times, making this an enduring resource for lifelong homeownership goals.
VA Home Loan Requirements
Before applying, veterans need to verify their eligibility and ensure they meet the VA home loan requirements. Generally, veterans, active-duty service members, and some National Guard and Reserves members may be eligible. Here’s a look at the essential requirements:
- Service Requirements: To qualify, veterans must have served at least 90 consecutive days during wartime or 181 days during peacetime. National Guard and Reserve members may be eligible after six years of service or following specific active-duty terms.
- Certificate of Eligibility (COE): The COE verifies a veteran’s eligibility status and is necessary to apply for a VA loan. This certificate can be obtained through the VA by submitting the required forms and service documentation or through a VA-approved lender using online systems.
- Credit and Income Qualifications: Although credit score requirements are more flexible than conventional loans, applicants must demonstrate stable income and a reasonable credit history, showing they can repay the loan.
For surviving spouses, eligibility may apply if their partner was killed in action, died from a service-related injury, or was taken as a prisoner of war.
How to Apply for a VA Loan
The VA loan application process starts with finding an approved lender experienced in veteran financing. Here’s a simple breakdown of the process:
- Choose a VA-Approved Lender: Not all lenders offer VA loans, so finding one with VA experience is essential. Specialty lenders like Omega Mortgage Group often have unique knowledge of the VA loan process.
- Gather Financial Documentation: Like other mortgage applications, applying for a VA loan requires providing financial documents, including pay stubs, tax returns, and employment history. Preparing these in advance can streamline the process.
- Obtain Your COE: Secure your Certificate of Eligibility (COE) through the VA’s online portal or with your lender’s assistance. The COE confirms eligibility and provides loan details to your lender.
- Prequalification and Preapproval: Getting prequalified with your lender helps determine your budget and shows sellers you’re serious. Once prequalified, a preapproval can strengthen your position when it’s time to make an offer.
After you have the COE, complete the application with the lender. They will guide you through further steps, such as underwriting and obtaining final approval. Once approved, you’re ready to start your home search and complete your purchase.
Using the VA Loan for Homeownership
VA loans are versatile, allowing veterans to buy a home, build one, or renovate an existing property. Here are some common uses for VA loans:
- Purchasing a Home: Veterans can use VA loans to buy single-family homes, multi-unit residences (as long as they live in one unit), and specific approved condos.
- Home Construction: VA loans can be applied toward construction financing for veterans interested in building a new home.
- Refinancing: Veterans can refinance existing mortgages into VA loans, sometimes even taking advantage of cash-out options.
- Home Modifications: Disabled veterans can use the loan to fund Specially Adapted Housing (SAH) modifications, enhancing accessibility with VA-funded grants.
Estimating Costs with a VA Loan Calculator
Understanding the potential costs involved with a VA loan is essential. While VA loans are highly affordable, they still come with a one-time funding fee that helps support the program. This fee is around 2.3% for first-time VA loan users and varies based on military service, disability status, and other factors. Veterans can calculate estimated costs with a VA loan calculator, which can help them plan their budget and monthly mortgage payments.
Veterans may pay the funding fee upfront or roll it into their mortgage, reducing the out-of-pocket cost but slightly increasing monthly payments.
Understanding VA Loan Rates and Interest Options
VA loan rates are competitive, but interest rates fluctuate based on market conditions, personal credit history, and the lender’s terms. Working with a VA-experienced lender often gives veterans access to more favorable rates. Veterans should also consider whether a 15-year or 30-year mortgage best suits their financial goals, as each offers distinct advantages in terms of interest savings and monthly payment amounts.
These programs collectively aim to support veterans in achieving homeownership and provide real estate professionals with the tools and knowledge to serve this community effectively. By leveraging these resources, veterans can find pathways to stable housing, and Realtors can enhance their ability to assist military clients.
