Active duty military members face unique challenges when it comes to home ownership. These brave men and women risk their lives every day in order to protect the safety of our country, but that doesn’t make it any easier for them to find a home they can call their own. Reduced paychecks, frequent moves, and strict credit standards are just some of the roadblocks that active duty service members commonly face when trying to finance a mortgage. However, there are lenders out there who understand the special circumstances these individuals face and have designed loan programs with them in mind. With that said, this article will walk you through some of the top military home loan options for active duty service members so you can choose the one that best meets your needs.
Veterans United Service Member Loan
Veterans United offers a special military home loan called the Service Member Loan. The loan is one of very few 15-year fixed-rate mortgages offered to borrowers with bad credit. Veterans United also offers a $5,000 down payment assistance grant to borrowers who qualify. This grant can be used towards the down payment on a home loan, prepaid property taxes, or any type of closing costs.
USAA’s Operation Welcome Home Loan
USAA offers an excellent home loan program called Operation Welcome Home Loan that serves active duty military members and veterans. The program is designed for borrowers with substandard credit and charges a competitive interest rate. Operation Welcome Home Loan also has a very flexible pre-payment plan, which allows you to make extra payments towards your loan whenever you want. This makes it easier to pay off your loan early and save yourself a lot of money in interest charges.
Bank of America’s Military Housing Privilege Program (MHPP)
The Military Housing Privilege Program is a special home loan program offered by Bank of America. Borrowers can use this loan to purchase a home anywhere in the continental United States and Hawaii. The program accepts applicants with poor or no credit, making it an excellent choice for service members with substandard or no credit history. Bank of America will also allow you to finance the loan over 30 years no matter how much money you make. This makes it easier to qualify for a home loan and helps you build your credit history.
Chase’s Servicemember Civil Relief Act Mortgage
Chase offers an excellent SCRA mortgage for service members who are financing a home using a government-backed loan. This mortgage comes with a few special features designed to help military members meet their obligations, including a reduction in the interest rate to as low as 2%. In some cases, Chase will also waive the application fee, provide a no-cost payoff estimate, waive the appraisal fee, and provide a lower funding fee. This is one of the best military home loan options available, but it’s only available to borrowers who are financing a home with a government-backed loan.
Wells Fargo’s SCRA and MHPP Program for military members
Wells Fargo offers a SCRA and MHPP mortgage for military members who are financing a home using a government-backed loan. The program has many of the same features as the Chase mortgage including a reduced interest rate and a reduced funding fee. This is one of the best military home loan options available, but it’s only available to borrowers who are financing a home with a government-backed loan.