Helping veterans jump the home loan hurdle
The Home for the Brave program gives special loan rates to veterans.
Returning to civilian life after the military isn’t easy and finding a home can be a big challenge for veterans. The Home for the Brave Home Loan Program aims to make the process easier for vets in Massachusetts.
The program is run through MassHousing, which is a non-profit public agency that’s goal is to help people get homes. They aren’t using your tax dollars, but rather selling bonds to fund its programs.
According to Tom Farmer, Communication Specialist for MassHousing, the agency decided it needed a program that was specific to veterans in 2009.
“We’d been doing home loans for 40 years,’’ Farmer said. “We never had a product specifically for veterans. So originally what we did was develop this in conjunction with veterans housing subcommittees and government committees on vets and we got more than 50 banks.’’
Farmer said that there are still around 50 different banks around the state that support these loans. Since 2009, he said the program has issued 104 loans for a total of $24.5 million in financing.
Veterans, active duty military members, and spouses of soldiers that were killed are all eligible.
“All loans are 30 year fixed with no subprime lending or anything,’’ Farmer said. “There are no hidden payments. It’s very straightforward and we feel that we have an excellent reputation around the state, constantly trying to market different products.’’
Farmer said for a single family home or condo, lenders can put as little as three percent down. For two, three or four family homes, it can be about five percent.
“We try to make it easier for them to put not a lot down so they wouldn’t be house rich and cash poor,’’ Farmer said.
Farmer also said that these loans have what is called an MI Plus, which is mortgage insurance that gives the vet mortgage assistance in case of unemployment. This can help the veteran for up to 6 months and can also help if he or she is deployed.
The Home for the Brave Home Loan Program also offers closing cost assistance up to $1500.
There are plenty of other states that have these loans, but Farmer thinks the Home Base Program is unique with all that they offer.
“We are innovative and lead the way for a lot of these things,’’ Farmer said.
A major hurdle is often overcoming some people’s preconceived ideas about home loans for veterans: that the loans are slow to close, tough to qualify for, out of reach, and that there are few buyers.
Farmer said there are income limits for qualifying for loans, but the county you live in is taken into consideration.
“It is still available to a lot of people,’’ he said.
Farmer said it is not that difficult to apply for these loans and that MassHousing is always there to help.
“I don’t think it’s difficult as long as they can afford it,’’ he said. “You come in, we verify income, employment, assets, credit score and they underwrite it. There is a pretty good chance of getting it.’’
Farmer said he even had an 80-something- year- old Korean War vet come in to refinance his house. It does not have to be a new veteran to get the benefits.
“We are happy to do it. We think it is an important product,’’ Farmer said. “They sacrifice so much and we felt it would be nice to have a program specifically for them.’’
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com