In a previous article I explained the 3 ways to get VA closing cost assistance. Of course assistance can come in many forms from lender assistance to realtor and seller assistance. You may even have opportunities to get government assistance through grants, which I will go over later. Here I’ll discuss another, more specific form of VA closing costs assistance that is helping millions of veterans nationwide. It’s called the Closing Costs Assistance Program. Below I’ll go over some of the more general points to the program but recommend you consult a VA Loan Specialist that can better assist you with your exact situation and qualifications.
Who Qualifies for the Closing Cost Assistance Program?
The Closing Cost Assistance program is not only for veterans and military personnel qualifying for VA loans. First time home buyers or First Responders may qualify for the program and use it for closing costs or even down payments. It can also be used for conventional, FHA and even USDA loans. This is especially beneficial for veterans that for one reason or another, don’t qualify for a VA loan or don’t meet the VA eligibility requirements.
Often times when you hear “income qualifying”, you might think it means “earning enough to qualify”. In the case of the Closing Costs Assistance Program, it’s just the opposite. You can’t exceed a specific yearly income. This program is reserved for low to moderate income borrowers only. Because the requirements are specific to each geographic location, you will need to consult a Loan Officer to discuss your specific income requirements.
How much Closing Cost Assistance can I get?
The program allows from $5,000 for first time home buyers up to $10,000 for qualified veterans. Again, this can be used for closing cost assistance or as mentioned before, down payment assistance.
$7,500 VA Closing Cost Assistance: If you currently serve or have served in any branch of the U.S. military but not called to action in an overseas conflict, you may qualify for up to $7,500 in VA closing costs assistance.
$10,000 VA Closing Cost Assistance: If you currently serve or have served in the U.S. Military and called to duty in an overseas conflict, you can qualify for up to $10,000 in VA closing costs assistance.
Find a Lender that offers VA Closing Costs Assistance
If you are interested in getting VA closing costs assistance, there are a couple key points to consider. One, not every lender has access to the Closing Cost Assistance Program. Although you can switch lenders midway through the process and can easily close on time, it’s always more beneficial to start off on the right foot. The second point is to choose a lender with absolutely no lender fees, origination fees or broker fees. It will benefit you in the end.
If you are working with another lender, you can get the assistance with a new lender and have your loan closed on time. You will just need to ask what the lender’s turn time is on approvals. I would recommend staying away from larger lenders and brokers if you do make the switch. Larger lenders have higher volume and cannot give you the personal assistance and brokers aren’t in control of the underwriting and as well, ship your file off to high volume lenders to underwrite. So you would end up in the same boat.