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Delaware veterans may be missing out

Sussex County Post - 6/26/2018

LEWES - According to recent studies, veterans comprise nine percent of our state's population, which is well above the national average, yet Delaware falls below the national average for VA loans. This could indicate that many veterans are unaware of their home loan benefits, or that some lenders are putting veterans into other, less involved mortgage programs.

While mortgages through Veterans Affairs may come with a little extra red tape, the benefit to the buyers is more than worth it. With no money down required, a 600 minimum credit score - 560 with five percent down, no Private Mortgage Insurance, competitive interest rates, consumer protections from the VA, the ability for the mortgage to be assumed by a qualified buyer when you sell, and added savings for disabled vets, VA loans are frankly the best mortgage option on the market and should be the first choice of any veteran.

Veterans and active duty personnel qualify for VA Home Loan benefits if they have served 90 consecutive days during wartime or 181 days during peacetime, have more than six years in the National Guard or Reserves, or are the surviving spouse of a service member who has died in the line of duty or as a result of a service-related disability. You'll just need your DD-214, or service records to establish your eligibility, and most mortgage companies can help you obtain them.

Based on current military pay rates and Basic Allowance for Housing, it's entirely possible for an active duty E-3 with dependents to purchase a $200,000 home in Delaware with their income alone. An E-6 with dependents and at least four years in, or an officer fresh out of training could potentially purchase a $250,000 home.

Incredibly, the mortgage payments in these scenarios would actually be less than the service member's BAH allotment. When and if you move, your VA mortgage and even your interest rate can be assumed by a qualified VA buyer, or you could maintain the home as a rental property.

Whether you're active duty and would rather buy a home than live in base housing, leaving the service and looking to buy your first home, already own a home but could benefit from refinancing into a VA mortgage up to 100 percent of your home's value, or are a veteran who is tired of renting, make it your mission to contact a mortgage professional and learn more about the benefits you've earned.

Editor's Note: Chad C. Moore is a licensed Mortgage Loan Officer (NMLS #165458), and Vice President of The Mortgage Market of Delaware. He can be reached at chad@themortgagemarketofdelaware.com, or 302-645-7950 in their Lewes office.


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