What You Should Know About Veteran Closing Cost Assistance

Animated US flagAre you aware of the Dream Makers Program for veterans? The Pentagon Federal Credit Union Foundation (PenFed Foundation) is a national charity that assists veterans with the purchase of a home. For eligible first-time home buyers, PenFed will match the down payment (and perhaps the closing expenses) up to $5,000.

Vets may begin with as little as $500 in their own funds.

The grant amount is determined by a two-to-one match between the borrower's earnest deposit and closing funds, up to a maximum award of $5,000.

Are you eligible for a Dream Makers grant?

Military veteran, active duty, national guard, reserve. All applicants must be first-time home buyers.

A first-time home buyer is someone who has not owned a home in the previous three years or has lost a home due to a disaster or divorce.
Pre-approval/pre-qualification from a licensed mortgage lender is required.

Are there any grant restrictions?

The PenFed Foundation requires a 30-year fixed-rate loan with a 3% minimum down payment. The house must be a single-family residence occupied by the owner.

Condominiums and townhouses are also eligible for the PenFed Foundation grant.

Prospective purchasers must meet specific income guidelines.

Income limitations

Gross annual income can not be more than 80% of area median income (adjusted for household size). See income limits

Eligible loan types

VA, FHA, Conventional

The Federal home-loan Bank of Atlanta

The Federal Home Loan Bank of Atlanta offers two home-loan programs to eligible veterans. The Veterans Purchase Product provides up to $7,500 in down payment, closing cost, and principal reduction assistance to homebuyers who are veterans or active-duty members of the United States military, as well as their wives or surviving spouses.

The Returning Veterans Purchase Product provides up to $10,000 in down-payment, closing-cost, and principal reduction assistance to homebuyers who are currently serving or have served in any branch of the United States military, their spouses, or surviving spouses, in an overseas military intervention.   SOURCE: FHLBbank