Military personnel who have served overseas for at least 90 days during any part of 2009, will have an additional year to buy their homes and still qualify for the tax credit. Intelligence service and foreign service personnel also are eligible.
Armed services members will have until April 30, 2011, to be under contract, and June 30, 2011, to close.
For military and other covered personnel, another benefit is a waiver on the time of occupancy of the home purchased with the tax credit. Homebuyers who purchase their home using the tax credit must use that home as a principal residence for a period of no fewer than three years, or must forfeit the entire credit. Military, intelligence and foreign service members do not have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business.
The second benefit for military personnel looking to buy a home is the traditional VA Mortgage. Some of the highlights that make the VA loan attractive one are:
100% financing! That’s right…..100%! You can buy a home with no down payment.
The Seller can pay your closing costs as an incentive to induce you to buy their home. That means you don’t need to come up with that money either.
No Reserve Requirements means you don’t need to have any real savings at all to buy a home with a VA loan. (Now, that doesn’t mean you shouldn’t have money in the bank before you buy a home, but it does mean you don’t have to.)
More liberal understanding of credit challenges (i.e. lower credit scores).
Two of the major hurdles for homebuyers today are accumulating sufficient liquid assets and credit scoring imperfections. The VA Mortgage lowers both hurdles considerably.