Alternative Home Financing For Veterans Who Want To Have Their Own Property


Buying a home is often a universal dream that is shared by almost everyone. Generally, you'd think of young couples who are just starting their families as typical homebuyers. Yes, while that is true, even the older generations have that desire too. Veterans, in particular, do want to be property owners as well. After all, real estate is one of the most valuable assets that anyone can own in their lifetime.

That said, owning a property for veterans is going to be a lot more complicated than for any other individual. This challenge comes from the fact that veterans are older and are also mostly unemployed. But times today have changed. There are now many other modes of financing a home that can work out to be friendlier for veterans.

Some of these alternative home financing methods include the following:

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1. Apply For A VA Loan

A VA loan is a type of loan that's available only to those who are active or were formerly active members of the military. This is an excellent option for military men who want to purchase a home that won't break the bank. The VA loan can be applied for directly by signing the Certificate of Eligibility as the first step. Alternatively, this loan is also available from private lenders.

Know more about the specific VA loan requirements by checking with your bank, local veterans association, or a private lender.


2. Borrow From A Retirement Account

This is one of the most viable options for veterans. If you haven't used up the amount in your retirement account already, why not borrow from it? It's basically like borrowing money for yourself. You can either pay the entire amount of the property in full if you can afford to do so, or make the down payment. Then, as you keep receiving your monthly pensions, make it a point to put a little amount back in your account every month.

In essence, it's still like you're paying for a mortgage, or applying for a loan for the property. However, you're not paying a lending institution. Instead, you're returning the money to yourself. On the upside, you won't have to pay or spend extra on the interest payments.


3. Jointly Buy The Property With Family You Can Trust

Here, it's imperative to highlight the fact that if you're going to buy joint property, you have to do this with a family member that you can trust. Jointly purchasing a property is not a new means of financing a property. This means sharing ownership of the property itself, so you've got someone else to divide the cost with.

Since you're buying something as major as real estate, you have to be a hundred percent certain that the person you're buying the property with is someone that you can absolutely trust. For veterans, you might want to limit these options to a reliable best friend that you've known for many years, your children, or your grandchildren.

There are two setups that you can agree on for jointly buying a property:


  • Tenants in common. In this kind of set up, you own different shares or portions of the property. Hence, this works better for those who are buying more valuable assets. The property won't automatically get transferred to the other person upon your death. In this case, you can designate someone else as the owner of your share in your will.
  • Joint tenancy. This arrangement is also referred to as "beneficial joint tenants". Here, both of you have equal rights to the entire property. If you die while the joint ownership is in existence, your share automatically goes to the surviving party and vice-versa.


4. Borrow From Family Members

If you have a close relationship with your family members, they'll be more than willing to lend you a hand with financing your property, especially your children and your grandchildren. If you are constrained by your finances, it's also worth considering borrowing money from them..

That way, you can negotiate better terms quickly. It's not going to be as stressful and financially daunting as it would be had you borrowed from a bank or lending institution. Plus, you won't need to have collateral to show your ability to pay as well. There's already an inherent element of trust, for the sole reason that they are family members.


5. Apply For A Guarantor Mortgage

Traditionally, applying for a home mortgage is one of the most common ways of financing a home. But when you don't have the amount needed for your mortgage, you're going to have to be a little bit more creative. Rather than applying for a traditional mortgage, you can apply for a guarantor mortgage instead.

First things first, though. You're going to need to find a person who will agree to be your guarantor. It's the veteran who will apply for the mortgage, but there has to be a guarantor that would guarantee payment of the house loan should the veteran fail to pay. In most cases, the guarantor is usually also a family member.



Whatever your age bracket might be, there is no "perfect" or "right" time to buy a home. If you keep waiting for when you're "ready," that time may never come. No one is ever ready, and expenses will always pop up regularly. For the veterans, this becomes all the more challenging. They're old, unemployed, and may also have a limited financial capability. But this doesn't mean that they should sacrifice their dreams. With these alternative home financing methods, veterans can also be the proud owners of their own property that they can enjoy for a lifetime.

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