What all you need to know about home loans for veterans
Presently serving members of the ADF and other more youthful veterans may be qualified for service when taking out a mortgage to buy a home or an investment property. According to the Department of Veterans Affairs (DVA), eligible veterans, ADF personnel and their dependents may be able to access three types of DVA home loan subsidy schemes, depending on their qualifying period of service.
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Defence Home Ownership Assistance Scheme (DHOAS): Available to current and former ADF members who served on or after 1 July 2008, completed a qualifying period of service and accrued sufficient entitlement and have served in the ADF within the last five years.
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Defence Service Homes Scheme (DHS): Available to former ADF members who completed a qualifying period of service before 15 May 1985 or served in Namibia between 18 February 1989 and 10 April 1990.
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Defence Home Ownership Scheme (DHOS): available to former ADF members who enlisted on or after 15 May 1985, and separated from the ADF before 1 July 2008.
Veterans can also apply for the everyday home loans found in Australia’s mortgage market, provided they can fulfil the necessary eligibility requirements, whether they receive support from the DVA or not.
Generally, to qualify for a home loan, a borrower will need to demonstrate to the lender that: 1. You’ll be able to meet your loan repayments on time. 2. Your income will continue until the end of the loan term. Older veterans are often entitled to a government pension that is considered a part of their income during the home loan application process. However, veterans that are solely dependent on a government pension are more likely to fall into the category of non-standard borrowers. Lenders are extra cautious while evaluating such borrowers for a home loan.
INFORMATION SOURCE https://www.ospreymortgagelending.com/