For many military families, the dream of owning a home is a cherished goal. The stability and security that come with homeownership are particularly valuable for those who have dedicated their lives to serving our country. The VA loan program is a fantastic benefit that has helped countless veterans and active-duty members purchase homes. However, even with a VA loan, there can be financial hurdles to overcome. This guide will explain how the Military Housing Assistance Fund (MHAF) can work in conjunction with your VA loan benefits to make your dream of homeownership a reality.
The Power of the VA Loan
The VA loan is a powerful tool for military homebuyers. It offers favorable terms and, in many cases, requires no down payment. This benefit is a cornerstone of the support our nation provides to its service members. However, it’s important to understand that a VA loan doesn’t cover all the costs associated with buying a home.
The Missing Piece: Closing Costs
One of the most significant expenses that often surprises first-time homebuyers is closing costs. These are the fees associated with finalizing a real estate transaction, and they can range from 2% to 5% of the home’s purchase price. For a $300,000 home, that could mean an additional $6,000 to $15,000 in out-of-pocket expenses. For military families who may not have substantial savings due to frequent moves and other challenges of military life, these costs can be a major barrier to homeownership.
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Home Purchase Price
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Estimated Closing Costs (2%-5%)
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$200,000
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$4,000 – $10,000
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$300,000
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$6,000 – $15,000
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$400,000
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$8,000 – $20,000
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$500,000
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$10,000 – $25,000
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How MHAF Bridges the Gap
This is where the Military Housing Assistance Fund (MHAF) comes in. MHAF provides closing cost assistance in the form of a gift, not a loan. This means you are not required to repay the assistance you receive. By helping to cover these upfront costs, MHAF makes homeownership more accessible and affordable for military families. This financial support can be used in conjunction with your VA loan, allowing you to maximize your benefits and minimize your out-of-pocket expenses.
“We were so excited to find a program that would help us in addition to the VA home loan benefits. We reached out to the organization and were quickly put in contact with the finance company and real estate agent that we’d be working with throughout the process.” — Andre & Amanda Morton, MHAF Homebuyers
As the Morton family’s experience shows, combining VA loan benefits with MHAF’s closing cost assistance can be a winning combination. MHAF is proud to help military families leverage their hard-earned benefits to their fullest potential.
Why Military Families Face Unique Challenges
Military families frequently move due to reassignments, making it difficult to establish long-term financial stability. Frequent relocations often mean restarting job searches, disrupting children’s education, and adjusting to new communities. Additionally, the transient nature of military life can make it challenging to save for a down payment or closing costs, which are critical steps in the home-buying process.
According to a Rand Corporation study cited by MHAF, only 27.3% of military families own their own home, compared to 69% of all Americans. When asked why, nearly half of military families said it was because they could not afford to do so. That’s why programs like MHAF are so vital to the military community.
What MHAF Offers
The Military Housing Assistance Fund provides more than just closing cost assistance. When you work with MHAF, you gain access to a national network of licensed, highly-experienced real estate agents and mortgage lenders who understand the unique needs of military families. Over the last 19 years, MHAF has recruited, interviewed, and trained these professionals to ensure they can provide the best possible service to our nation’s heroes.
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MHAF Benefits
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Description
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Closing Cost Gift Funds
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Financial assistance that does not require repayment
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Network of Professionals
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Access to vetted real estate agents and mortgage lenders
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Specialized Support
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Professionals trained to work with military families and their unique needs
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Refinance Assistance
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Special allowance for gift funds toward refinance closing costs
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Your Path to Homeownership
If you are a member of the military community and are considering buying a home, don’t let closing costs stand in your way. The Military Housing Assistance Fund was created to help you overcome these financial hurdles. Our program provides you with a network of experienced real estate and mortgage professionals who understand the unique needs of military families, and our closing cost assistance can provide the financial boost you need to get into your dream home.
Please note: MHAF services are currently available in 47 states. Services are not available in Alaska (AK), Ohio (OH), or New York (NY) at this time. MHAF provides assistance for home buyers only and does not offer rental assistance.
Take the first step towards homeownership today. Contact the Military Housing Assistance Fund to learn more about how our program can work for you and your family.