What Every Married Military Member Should Consider Before Deploying: Home Ownership
Posted on: 17 April 2017
If you are in the military and are expecting to deploy in the foreseeable future, you may be wondering if you should buy a house for your spouse and children to live in while you are gone. Thoughts of not returning home or returning home severely disabled may have your spouse feeling quite a bit anxious, especially if it's the first deployment and even more so if you are the sole breadwinner. Buying a house before deploying can alleviate at least some of the stress. Here's why and how to get the best home loans and insurance for your situation.
No down payment is required for a VA loan
VA loans do not require a down payment, because the federal government guarantees the loans. Typically, conventional lenders prefer a down payment of 20%. If someone is unable to come up with 20% down payment, the mortgage lender will require them to get mortgage protection insurance and continue carrying it until the equity in their home reaches a minimum of 20% of the mortgaged amount. This protects the mortgage company from default in case of a job loss or—worse—the homeowner dies.
Mortgage protection insurance can protect your family
While mortgage protection insurance is not required with a VA loan, it's still a good idea to have it, especially when you are in the military. The reason for this is because this insurance will pay the entire mortgage off if you pay the ultimate sacrifice for your country. The insurance will pay the remaining balance of the mortgage directly to the mortgage company. The premiums for this type of insurance will definitely need to be factored into your calculations when determining how much of a mortgage you can afford, but the protection it can give to your spouse and children if you don't return home or return home is well worth it.
VA mortgage life insurance coverage
If you become severely disabled and it's connected to your time in service, you may become eligible for Veteran's Mortgage Life Insurance, which is directly from the Veteran's Administration. To qualify for this benefit, you will need to receive an adapted housing grant, and have a house and a mortgage in your name. Mortgage life insurance coverage from the VA typically has a more affordable premium than the conventional alternative; therefore, if you do become injured, the VA insurance can take the place of the conventional insurance.
Share