If you have a loved one who died during activity duty service or from an injury that is service-related, you are still able to use the Veteran Loan Administration or VA benefits that your spouse earned through their service. If you are ready to purchase a home, you should consider using the VA loan benefits that are available to you as a surviving spouse.
Benefit #1: Skip the Down Payment
When you purchase a home with a VA loan, as long as you have an acceptable credit score, you will be able to avoid having to put down a down payment. Putting down a down payment can be a big burden when you are raising a family on your own. With a VA loan, you either will not have to place a down payment or you will only have to place a very small down payment.
This can make it much easier for you to get a home and take care of your family. You can purchase a home without having to save up thousands of dollars.
Benefit #2: Avoid Paying Private Mortgage Insurance
When you purchase a home with a traditional loan, if you enter a program that allows you to place a smaller down payment, you will have to pay mortgage insurance on the loan. This adds to your monthly mortgage amount and adds to the overall cost of your loan. This is a big, unnecessary expense you shouldn't have to deal with. With a VA loan, you don't have to worry about paying for private mortgage insurance because you were able to skip the traditional 20% down payment.
Benefit #3: Skip the VA Funding Fee
When you get a VA loan normally, you have to pay a service fee or funding fee. This small fee is designed to pay the cost of backing the loan and offset the cost of VA loans to taxpayers.
If you are a surviving spouse, you do not have to pay the funding fee. You are able to get an exemption from this fee. Although this fee is generally only a couple thousand dollars, that can be a lot of money when you are raising a family on your own. The military understands this and they understand the huge sacrifice your family has already made, so you don't have to pay the funding fee when you secure a VA loan.
If you are a surviving spouse of someone who died in active duty or because of active duty injuries, getting a VA loan for a home provides you with a variety of benefits. You don't have to place a down payment, you can avoid paying private mortgage insurance, and you can skip the VA funding fee, making purchasing a home a much more affordable endeavor.
For more information on VA mortgage loans, contact a lender near you.