Fort Bliss Monitor

Home buying 101: your state can provide help

Spc. Jason Stadel
108th ADA Public Affairs

Editor’s Note: This is the second in a series of three articles on home buying, based on a recent seminar conducted by the Financial Readiness Program within Team Bliss’ Army Community Service office.

Before investing in what will likely be the biggest purchase of your life, it’s good to learn all you can about the process, such as help that may be available from agencies in your home state.

Accordingly, Team Bliss’ Army Community Service office recently sponsored a home-buying seminar as part of its Financial Readiness Program. One of the presenters was Maria Salles, an outreach marketing specialist with the Texas Veterans Land Board.

“Several states have organizations similar to ours. Alaska, California, Oregon and Wisconsin are a few I can think of off the top of my head,” Salles said. “These states and others have state-level programs involving land, housing, home improvement and state veterans homes.”

While Salles’ discussion focused on programs available to Texas veterans, she emphasized that many states have similar programs.

Land program - The land program offers eligible Texas veterans the opportunity to buy at least one acre of land and finance the purchase up to $40,000 at 6.4 percent over a 30-year term. The Veterans Land Board finances the least expensive of three options: $40,000, 95 percent of the final purchase price or 95 percent of the appraised value of the land. The veteran must have at least a 5 percent down payment invested as cash equity in the property. There is a $325 closing fee, which includes an appraisal and all contract fees. The veteran must have a certified survey of the land with an original signature and seal before closing.

Housing assistance - The Texas Veterans Housing Assistance Program provides up to $240,000 in low-interest loans for the purchase of a primary residence. It does not apply to refinancing a loan. This program may be used in conjunction with the VA, FHA or a conventional loan from a participating lender, though certain restrictions apply in the latter case. Loans are available in 15, 20, 25 and 30-year terms. The base interest rate is 5.45 percent, but if the loan is for 15 years or less, the VHAP will take 1/4 percent off the rate. Disabled veterans and teachers certified in Texas get a 1/2 percent discount. Requirements for down payment and financial qualifications are determined by the primary lender. All VHAP loans are funded by the sale of bonds, and no discount points are charged on loans. This translates into loans at interest rates below market value for home mortgages, resulting in lower payments for veterans.

Home improvement - The Texas Veterans Home Improvement Pro-gram lends eligible Texas veterans up to $25,000 for up to 20 years on a fixed-rate note to make substantial repairs to their existing primary residence. No down payment is required. For loans of less than $10,000, the maximum loan term is 10 years.

Veterans can get loans for a variety of home improvements including room additions or remodeling, HVAC upgrades, new flooring, roofing, garages, sidewalks, driveways, screened porches, patios, decks, fences and thermal windows. Ineligible improvements include pools, spas, sport courts, barbecue pits and landscaping. The veteran is responsible for hiring a contractor, which may include relatives.

There is also a “rapid response program,” which provides emergency loans for eligible Texas veterans who, for health or safety reasons, need immediate home repairs. Same-day approval and next-day final approval on a loan of up to $25,000 is possible.

Finally, the Greenbuilding Program is an extension of the Texas VHAP and VHIP programs. It makes loans at a reduced rate for home construction, purchase of new homes and remodeling. Veterans using greenbuilding features that reduce waste and save water, energy and building materials can lower their interest rate, resulting in a substantial savings over the life of the loan. A greenbuilding checklist allows the veteran to choose which features fit the climate, location and budget of the home. Features required by city or county building codes do not qualify. Greenbuilding information is available at 1-800-252-VETS or online at www.texasveterans.com. Click on Housing Assistance or Home Improvement, then select Green-building.

Veterans’ homes - Texas state veterans homes are Medicare and Medicaid-certified 160-bed skilled nursing facilities for qualified veterans, their spouses and certain Gold Star parents of deceased veterans. Homes are located in Big Spring, Bonham, Floresville and Temple, with two more to be built – in McAllen and in northeast El Paso. These homes offer amenities not usually provided in most nursing homes, including a library, gift shop, meditation area and a secured Alzheimer’s unit. In addition to primary medical care, the homes provide specialized services, such as physical, speech and occupational therapy, plus a wide range of activities. Applications and information about admission requirements are available at www.texasveterans.com or by calling 1-800-252-VETS.

Service era discount - Texas veterans who served on active duty in the Armed Services before Jan.1, 1977, and who have been discharged from active duty for less than 30 years may be eligible for a lower interest rate in the VHAP and VHIP programs.

“These Texas veterans’ loan programs are not associated with the federal VA,” Salles noted. “Therefore, even if you have used your VA benefits, you may still be eligible for these state loan programs.”



www.bliss.army.mil	Published for the Fort Bliss/El Paso, Texas Community	October 14, 2004

<map name="boxmap-b4"> <area shape="rect" coords="0, 589, 120, 600" href="http://rcm.amazon.com/e/cm/privacy-policy.html?o=1" > <area coords="0,0,10000,10000" href="http://www.amazon.com/exec/obidos/redirect?tag=&creative=92501&camp=8117&link_code=dl1&path=subst/misc/amazon-cobrand-cc/v3/marketing-from-associates-step1.html/ref%3Db1_assoc_29" > </map>	Home buying 101: your state can provide help Spc. Jason Stadel 108th ADA Public Affairs Editor’s Note: This is the second in a series of three articles on home buying, based on a recent seminar conducted by the Financial Readiness Program within Team Bliss’ Army Community Service office. Before investing in what will likely be the biggest purchase of your life, it’s good to learn all you can about the process, such as help that may be available from agencies in your home state. Accordingly, Team Bliss’ Army Community Service office recently sponsored a home-buying seminar as part of its Financial Readiness Program. One of the presenters was Maria Salles, an outreach marketing specialist with the Texas Veterans Land Board. “Several states have organizations similar to ours. Alaska, California, Oregon and Wisconsin are a few I can think of off the top of my head,” Salles said. “These states and others have state-level programs involving land, housing, home improvement and state veterans homes.” While Salles’ discussion focused on programs available to Texas veterans, she emphasized that many states have similar programs. Land program - The land program offers eligible Texas veterans the opportunity to buy at least one acre of land and finance the purchase up to $40,000 at 6.4 percent over a 30-year term. The Veterans Land Board finances the least expensive of three options: $40,000, 95 percent of the final purchase price or 95 percent of the appraised value of the land. The veteran must have at least a 5 percent down payment invested as cash equity in the property. There is a $325 closing fee, which includes an appraisal and all contract fees. The veteran must have a certified survey of the land with an original signature and seal before closing. Housing assistance - The Texas Veterans Housing Assistance Program provides up to $240,000 in low-interest loans for the purchase of a primary residence. It does not apply to refinancing a loan. This program may be used in conjunction with the VA, FHA or a conventional loan from a participating lender, though certain restrictions apply in the latter case. Loans are available in 15, 20, 25 and 30-year terms. The base interest rate is 5.45 percent, but if the loan is for 15 years or less, the VHAP will take 1/4 percent off the rate. Disabled veterans and teachers certified in Texas get a 1/2 percent discount. Requirements for down payment and financial qualifications are determined by the primary lender. All VHAP loans are funded by the sale of bonds, and no discount points are charged on loans. This translates into loans at interest rates below market value for home mortgages, resulting in lower payments for veterans. Home improvement - The Texas Veterans Home Improvement Pro-gram lends eligible Texas veterans up to $25,000 for up to 20 years on a fixed-rate note to make substantial repairs to their existing primary residence. No down payment is required. For loans of less than $10,000, the maximum loan term is 10 years. Veterans can get loans for a variety of home improvements including room additions or remodeling, HVAC upgrades, new flooring, roofing, garages, sidewalks, driveways, screened porches, patios, decks, fences and thermal windows. Ineligible improvements include pools, spas, sport courts, barbecue pits and landscaping. The veteran is responsible for hiring a contractor, which may include relatives. There is also a “rapid response program,” which provides emergency loans for eligible Texas veterans who, for health or safety reasons, need immediate home repairs. Same-day approval and next-day final approval on a loan of up to $25,000 is possible. Finally, the Greenbuilding Program is an extension of the Texas VHAP and VHIP programs. It makes loans at a reduced rate for home construction, purchase of new homes and remodeling. Veterans using greenbuilding features that reduce waste and save water, energy and building materials can lower their interest rate, resulting in a substantial savings over the life of the loan. A greenbuilding checklist allows the veteran to choose which features fit the climate, location and budget of the home. Features required by city or county building codes do not qualify. Greenbuilding information is available at 1-800-252-VETS or online at www.texasveterans.com. Click on Housing Assistance or Home Improvement, then select Green-building. Veterans’ homes - Texas state veterans homes are Medicare and Medicaid-certified 160-bed skilled nursing facilities for qualified veterans, their spouses and certain Gold Star parents of deceased veterans. Homes are located in Big Spring, Bonham, Floresville and Temple, with two more to be built – in McAllen and in northeast El Paso. These homes offer amenities not usually provided in most nursing homes, including a library, gift shop, meditation area and a secured Alzheimer’s unit. In addition to primary medical care, the homes provide specialized services, such as physical, speech and occupational therapy, plus a wide range of activities. Applications and information about admission requirements are available at www.texasveterans.com or by calling 1-800-252-VETS. Service era discount - Texas veterans who served on active duty in the Armed Services before Jan.1, 1977, and who have been discharged from active duty for less than 30 years may be eligible for a lower interest rate in the VHAP and VHIP programs. “These Texas veterans’ loan programs are not associated with the federal VA,” Salles noted. “Therefore, even if you have used your VA benefits, you may still be eligible for these state loan programs.”