One of the biggest perks of serving in the military, Reserves, or National Guard is the ability to finance your home with a VA home loan. Any qualified veteran and qualified spouse can use this loan to pay for their homes while being able to take advantage of low interest rates and flexible credit requirements. So, what happens if you’re discharged from the military? Believe it or not, a discharge won’t disqualify you from being able to use the loan program. It all comes down to how you were discharged.
Dishonorably Discharged Veterans Can’t Use the Loan
No one sets out to get a dishonorable discharge on their record. That said, it happens and earning that discharge designation on your record will prevent you from being able to use the VA home loan program permanently. Even if you’re otherwise qualified for the loan, a dishonorable discharge means you’ll have to look into other financing options to buy a house.
Other Discharge Types Can Apply for VA Loans
If you’re discharged for any reason other than dishonorable conduct, you’ll still be able to finance your home with a VA loan. This means you’ll be able to finance the full price of the house and won’t have to worry about making a down payment on the purchase. You’ll also qualify for lower interest rates and be able to use the benefit on any house you buy to use as a primary residence.
What Can You Do If You’re Dishonorably Discharged?
A dishonorable discharge doesn’t mean you won’t be able to buy a house with a mortgage. It just means you won’t be able to use a VA home loan to finance the house. Instead, you’ll want to look into traditional mortgage programs and find ways to boost your credit score to decrease your interest rate. The higher your score is, the better your interest rates will be for the life of the loan. Ultimately, it will save you money and can help you keep your monthly bills as low as possible.
Speak With an Expert
If you’re worried about your discharge status and aren’t sure if you qualify for a VA home loan, don’t give up your dreams of homeownership. Contact our team to discuss your situation and let us help you find the perfect mortgage for your budget and personal situation. When you’re ready, we’ll help you apply so you can get into the home of your dreams as quickly as possible.