Vets benefit from protections for home loans

#Middelbury #Veterans

One of our veterans’ benefits is help with buying a home. The Department of Veterans Affairs has a new policy that protects veterans from predatory lenders when we refinance loans.

The lending industry has some bad actors who pull scams on home buyers, adding extra interest, fees and multiple expenses, and more. The new policy calls a halt to all that, adding to the list of protections we already have when buying a home with a VA-guaranteed loan.

For example, lenders must provide us with a comparison of what we already have and what we propose to get in a refinance. This needs to include, among other things, a comparison of the monthly payments so we can see what we actually will save.

If you have a fixed rate and are refinancing for another fixed rate, that rate must be at least 0.50 percent less. If you have a fixed rate and are refinancing for an adjustable rate, that rate must be at least 2.00 percent less.

Applications must be dated on or after May 25, 2018, for the new policy to apply. To read the rest of the changes, go online to www.benefits.va.gov.

Modifications to homes for disabled veterans are available for certain service-connected disabilities. The VA will help by giving up to $81,000 for those modifications under Specially Adapted Housing (SAH) grants. To learn more, go online to www.va.gov and search for “adapted housing grants.” Another type of grant, Special Housing Adaptation (SHA) grant, can help in other ways, with a $16,217 cap. If a veteran needs a ramp or widened doorways, these grants can help.

But a heads up – SAH grants are limited to 30 veterans a year, and all the money is gone for fiscal 2018. For next year, check eligibility requirements and apply early.

(c) 2018 King Features Synd. Inc.