All of our military deserve much respect and benefits for servicing our country. But, some deserve even more of both. Those include purple heart recipients, which are service members who have been injured or killed in action. Therefore, this group of men and women deserve every benefit we can give them. Recently, there’s been a new VA loan guideline that adds to the purple heart benefits list. This VA guideline change allows purple heart recipients to majorly lower a portion of VA closing costs. Lowering this cost benefits VA borrowers by reducing the loan amount as well as the monthly payment. Thus if you or someone you know is a purple heart recipient, make sure to read this article as it could make getting a VA loan even better.
Service Connected Disability Means Funding Fee Exemption
Sometimes a purple heart recipient may become disabled in some capacity. Although, many military Veterans have a service connected disability without ever receiving a purple heart. When it comes to using a VA loan to build, buy, or refinance a home, there is a great VA loan benefit. It comes in the form of lower closing costs. That reduced closing cost can mean a savings of up to 3.45% of the loan amount too! VA loan guidelines state that any service member or Veteran with a service connected disability rating of 10% or more is exempt from the VA funding fee.
The VA funding fee ranges from .5% – 3.45% of the base loan amount. Even though it is customarily financed into the loan amount, it is a closing cost. Usually, it is the largest VA closing cost. In order to officially receive the VA funding fee exemption status, your VA lender will request a VA certificate of eligibility. Among other key information, the COE will tell the lender whether to charge or waive the VA funding fee. So if the VA eligible borrower has an exempt status, a VA loan is very hard to beat.
Additionally, Veterans with service connected disability may pay lower property taxes. Even some counties and states give a property tax exemption for Veterans with a 100% service connected disability. So, learn more about property tax discounts or exemption here.
Purple Heart Benefits Now Include VA Funding Fee Exemption
The Blue Water Navy Vietnam Act of 2019 includes several VA loan related benefits. A new one adds to the list of purple heart benefits. It states the VA funding fee is waived for those serving on active duty and provide a certificate or military orders which show the Purple Heart award. So, if you are active military and have been awarded the Purple Heart, ask about a VA funding fee waiver.
OVM Financial Focuses on VA Loans
VA loans account for over 50% of closed volume at OVM Financial. Based in Virginia Beach, VA, OVM knows VA loans and will help Veterans receive the benefits they deserve. We ask military members to give OVM an opportunity to provide the service deserved in the form of an excellent VA home loan.