Routing # 256078446
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Balancing Homeownership with Military Service
What you'll learn: Everything you need to know about balancing homeownership with military service.
EXPECTED READ TIME: 5 MINUTES
August 23, 2024
Buying a home is an exciting endeavor, but for servicemembers on active duty, the process of becoming a homeowner may look a little different. Though Veterans Affairs (VA) loans offer military personal and veterans a more affordable way to purchase a home, your homebuying journey may be more complex due to sudden deployments and service obligations.
The good news is, you do not have to put off planting your roots, even if you are on active duty. If you are deployed to other parts of the world, there are solutions available that can allow you to complete the loan process remotely.
Buying a home while on active duty
The homebuying process can have unique challenges, especially for active military personnel who may be deployed at a moment’s notice. Luckily, it is possible to buy a home even if you are not physically present for every step of the process. Thanks to the Internet, you can research potential homes, take virtual tours, and submit necessary documents from anywhere with a reliable Internet connection.
However, in order complete a home purchase while deployed, you will also need a power of attorney (POA).
What is a power of attorney (POA)?
You may already be somewhat familiar with the concept of a POA, but it is a vital part of the homebuying process for deployed military members. A POA is a legal document that allows someone to act on your behalf and sign purchase agreements or closing documents. This can be a spouse, lawyer, real estate agent, or family member. As long as it is someone you trust to act in your best interests.
In most cases, lenders and real estate attorneys will not even allow spouses to sign for you without a notarized POA. Some lenders may require the use of their own unique POA documents. You will need one that is specific to the property you are interested in and provides a date, price range, and address. It is important to discuss your lender’s requirements with a loan officer early in the homebuying journey.
Tips for buying a home remotely
Navigating the process of buying a home remotely can get a little tricky, but there are steps you can take to help you secure your dream home no matter where you are:
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Get your certificate of eligibility.
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Find a VA-approved lender and get pre-approved.
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Hire a real estate agent who has experience working with servicemembers.
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Utilize the Internet for house hunting and virtual tours.
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Enlist the help of family and friends to tour homes in person and report back to you.
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Appoint your spouse or someone you trust to be your POA.
VA loan occupancy requirements when you are deployed
A big concern that active duty servicemembers may have is the VA’s borrower occupancy requirements. In order to be eligible for your VA loan, you must be living in the home you intend to purchase within 60 days of closing, which can be a problem if you are deployed. However, deployment does not automatically mean you are barred from being approved for a VA loan and home purchase.
Servicemembers who purchase a home while deployed have temporary duty status, meaning you can meet the occupancy requirements as long as you will occupy the home within a year of closing. There is also an option that allows a spouse or dependent child to live in the home in order to satisfy these requirements.
Financing options for military members
Compared to conventional mortgage options, VA loans offer eligible borrowers a long list of benefits, including:
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As low as zero down for a down payment
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No credit score minimum set by the VA; most lenders will require 620 or higher
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Limits on closing costs
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No private mortgage insurance
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Refinance options
VA loans are created with military personnel in mind and may offer you an affordable way to become a homeowner, even if you are active duty and only have a moment’s notice before deployment. As long as you are proactive and do your research, you do not have to let your service obligations interfere with your dream of owning a home.
You will want to choose a lender who has extensive experience servicing VA loans and working with servicemembers before, during, and well after the homebuying process. Plus, with a little help from your homebuying dream team, family, and friends you can be confident that you are able to make informed decisions no matter how far away you are stationed.
SIMILAR ARTICLES
The VA Loan Process Step-by-Step
Learn the steps to the entire VA loan process, from eligibility to choosing an approved lender, to closing and everything in between.
Can You Refinance a VA Loan?
Learn how to refinance a VA loan, eligibility guidelines, VA refinance options, and how soon you can refinance a VA loan.
What Are the Pros and Cons of VA Loans?
There are many great things about a VA loan, but there are also some disadvantages. Find out the requirements, and if a VA loan works for the type of property you're buying.
Top 10 Reasons to Consider a VA Loan from a Credit Union
The best mortgage lenders for veterans can be credit unions. For competitive IRRRL rates, low VA mortgage interest rates and fees, go to a credit union.
Home Buying Steps
Mortgage Products
Disclosures
1Conventional Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
2FHA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 96.5%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
3VA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.125 discount point, which equals 1.125 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $450,000; loan-to-value ratio of 95%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of $995.
4Jumbo Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 0.625 discount point, which equals 0.625 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, non-conforming, fixed-rate loan. Loan amount of $1,009,000; loan-to-value ratio of 70%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Advance Period. During your Advance Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.
Routing #256078446
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