Most Veterans are eligible for the VA Home Loan Program that allows for financing with no down payment for conforming loan amounts. Higher Jumbo Loan Limits are available with small down payments and all VA loans have NO Mortgage Insurance.
VA Loans require an up front, financed Funding Fee for all first time and repeat users of the VA Loan Benefit. The amount is added to the base loan amount of the purchase price so in most cases, it is financed into the loan amount. Veterans with 10% or more disability rating are eligible for the VA Funding Fee to be waived, giving the disabled veteran a great advantage.
Many Disabled Veterans are NOT aware of the Disabled Veterans Property Tax Exemption that is available to them. A 100% Disabled Veteran in California is entitled to a property tax exemption up to the county limits. On the lower purchase prices, this can amount to most, if not all of the annual property taxes charged to the veteran homeowner. The underwriter must take this annual tax savings in to account when qualifying the veteran buyer for their VA home mortgage. Be sure to check with your county tax collector’s office for actual exemption limits for your county.
Next, if you qualify, we can add a Mortgage Credit Certificate (MCC) for additional savings. The MCC requires the Veteran buyer to be a First Time Buyer and there are annual income limits that vary per county in California that the Veteran must stay within to qualify for the program. Veterans can get a tax credit HEROfor a percentage of the actual amount of annual mortgage interest paid. Unlike a TAX DEDUCTION that deducts mortgage interest paid from your taxable income, a TAX CREDIT is taken right off the actual amount of federal tax due. Contact Doug Bullwinkel at Academy Mortgage for details on income limits for every county in California.
Other Benefits for Disabled Veterans in California include waiver of DMV registration fees, free license plates and reduced annual fees for fishing and hunting licenses. Spouses, registered domestic partners, children under age of 27 and unmarried surviving spouse of a veteran with service-connected disability or who dies as a result of service related causes may qualify for waiver of mandatory tuition and fees at any State of California Community College, California State University or University of California campus.
Veterans have put everything on the line to protect us, so it’s our responsibility to make sure that we help make them aware of all benefits to which they are entitled. They need to go to the FRONT of the line for short sales and REO’s, not the BACK of the line where they currently are in many areas. While most of us have been safe in our homes, they have been away from their families for extended periods of time, taking care of us. Now it’s time for all of us to “STEP UP” to do whatever we can to help these HEROES to purchase a home for their families and share the American Dream. It’s the least we can do for them.
For All of the above programs available to Veterans, ALWAYS CONSULT WITH A TAX PROFESSIONAL FOR ADVICE BEFORE PROCEEDING TO DETERMINE WHAT IS RIGHT FOR YOUR PARTICULAR SITUATION.
NOTE: Doug Bullwinkel is a licensed California Mortgage Loan Originator, NMLS #281609 for Academy Mortgage with over 30 years in the Real Estate and Mortgage Industry. He specializes in Niche loan programs including the VA Home Loan Program, FHA, USDA, CalHFA and down payment assistance programs. His website is VALender.com. Doug can be reached at (800) 636-8910 for more information or email him at: firstname.lastname@example.org.