The abnormal scarcity — compounded by the region’s long-running underproduction of housing — emerged when homeowners chose not to sell and give up pandemic-era mortgage rates. The so-called seller strike helped pushed home values to new records, despite rising borrowing costs.

Now the inventory picture might be changing.

“It’s getting a little bit better,” said Eneida Contreras, a Compass real estate agent who specializes in the San Fernando, Santa Clarita and Antelope valleys.

In April, the number of homes listed for sale in most Southern California counties rose from the same month a year earlier, according to data from Zillow.

Los Angeles, Riverside, San Bernardino and Ventura counties turned positive for the first time since the first half of 2023, each recording an increase of at least 5%.

Orange was the only county to see a decline, while in San Diego, inventory has risen for two consecutive months and is 18% above what it was a year ago.

To be sure, the availability of homes remains at historically low levels. But as it rises, it opens the possibility that prospective buyers will have an easier time making the largest purchase of their lives.

Jordan Levine, chief economist with the California Assn. of Realtors, said more homes are coming onto the market because owners are increasingly accepting that the new normal is interest rates in the 6%-7% range.

As people get married, divorced and have children, the “benefit of the low rate starts to be outweighed by having a house that doesn’t work,” Levine said. “Ultimately, these are people’s homes, too, and they are not just straight-up investments.”

Levine said he expects inventory levels to increase and home prices to be lower than they would have been if inventory continued to shrink. However, he and other experts said home prices are unlikely to decline. That’s because though more owners are coming to terms with high rates, many will likely choose to keep their sub-4% mortgages — a phenomenon known as the lock-in effect.

Other factors are at play. The economy is growing, and while most Southern California households can’t afford to buy, there’s a sizable population of techies, Hollywood types and other white-collar workers who can funnel excess cash into large down payments that offset high mortgage rates.

“The current level of inventory rise — which is a little bit, but not a lot — is likely to slow price appreciation but not turn it negative,” said Mike Simonsen, founder of Altos Research, a real estate data firm.

The rise in inventory is providing opportunities for buyers with means, but the market is still tough.

Interest rates are above 7%, and even if home prices rise at a slower pace, they will set records.

In Los Angeles County, the average home price in April was $890,516, an increase of 1.4% from March and surpassing the previous record, set in June 2022.

The six-county Southern California region climbed above its 2022 average home price record in March. It set another all-time high last month, reaching $875,388.

If mortgage rates noticeably decline, the lock-in effect could lessen and bring more homes onto the market. Falling mortgage rates would also immediately make housing more affordable.

Whether falling rates provide much relief is another question. Lower borrowing costs may bring a flood of additional buyers who quickly gobble up new listings and supercharge price growth.

“Building more housing is really what is going to break that cycle,” said Nicole Bachaud, a senior economist with Zillow.

According to the latest forecast from the Mortgage Bankers Assn., rates will remain high but will drop to 6.4% by the end of 2024.

Carol Otero of Rodeo Realty is among the Los Angeles agents seeing an increase in inventory. She estimated that the number of homes for sale in some San Fernando Valley neighborhoods has at least doubled in the past few weeks.

Buyers are eager.

Last Friday, Otero listed a four-bedroom home in Northridge. She said she has received six offers, all above the $869,000 asking price.

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For those just getting started, an Arizona-based real estate rewards and referral network company, RBN (Real Buyer Network), offers homebuyers added value to their purchase through its relationship with American Express.

Here’s how it works: Homebuyers use an RBN participating agent for their home purchase and they can earn American Express Membership Rewards® points up to the purchase price of the home.

Larry and Myra of North Carolina recently earned more than 500,000 reward points with RBN. “We enrolled with RBN and were put in touch with Thomas Wohl, Broker, Realtor and it’s probably the best decision we ever made. Thomas was not just interested in us buying a house, but rather we bought the RIGHT house for us.” The home purchase itself follows the traditional real estate process of cash or mortgage financing.

Founder Kipp Lassetter says, before prospective homebuyers get started, before touring any homes, before interviewing any other agents or doing anything in the home buying process, they need to visit RBN’s site. “Choose from the most qualified participating agents, buy their home through the traditional real estate process and earn rewards. Using an RBN participating agent is a no-brainer.”

Lassetter was inspired to found RBN after his own home buying experience, in which he struggled to find a real estate agent with expertise in local neighborhoods and a willingness to go the extra mile on service and support. RBN fills this niche by partnering with the best local agents and rewarding homebuyers for selecting these agents.

“Each participating agent endures a rigorous vetting process that includes a one-on-one interview and review of sales performance,” Lassetter says.

Home purchasers have already earned millions of rewards points using RBN participating real estate agents. If you don’t have an existing American Express account, don’t worry. The RBN virtual wallet tracks and maintains your points until you connect to an eligible account.

—-

Visit joinrbn.com for more information and to connect with an RBN participating real estate agent in your area.

NewsUSA | Contributed

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LOS ANGELES, May 17, 2021 /PRNewswire/ — Heated market conditions and a shortage of homes for sale continued to put upward pressure on home prices in California, driving the state’s median price above the $800,000 benchmark for the first time ever in April, as home sales soared from last year’s pandemic-level lows, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) said today. 

Infographic: https://www.car.org/marketing/clients/infographics/April%202021%20Sales%20and%20Price

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 458,170 in April, according to information collected by C.A.R. from more than 90 local REALTOR^® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2021 if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

April home sales increased on a monthly basis for the third consecutive month, rising 2.6 percent from 446,410 in in March and up 65.1 percent from a year ago, when 277,440 homes were sold on an annualized basis. The sharp yearly sales jump was expected as the housing market was hit hard by the pandemic shutdown last year, when home sales dropped more than 30 percent over the previous April.

“California continues to experience one of the hottest housing markets as homes sell at the fastest pace ever, with the share of homes sold above asking price, the price per square foot and the sales-to-list price all at record highs, while active listings remain at historic lows,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office.

“The high demand and shortage of homes for sale, driven by these market factors, continued to drive up home prices and shatter the record-high set just last month.”

California’s median home price broke last month’s record and set another new record high in April as the statewide median price surged more than 34 percent from a year ago. The statewide median home price climbed 7.2 percent on a month-to-month basis to $813,980 in April, up from March’s $758,990 and up 34.2 percent from the $606,410 recorded last April. The year-over-year price gain was the highest ever recorded, and it was the first time since June 2013 that the state recorded an annual increase of over 30 percent. 

“Not only do skyrocketing home prices threaten already-low homeownership levels and make it harder for those who don’t already have a home to purchase one, it also brings to question the sustainability of this market cycle,” said C.A.R. Vice President and Chief Economist Jordan Levine. “As vaccination rates increase and the state reopens fully, higher home prices will hopefully entice prospective sellers who have held off putting their homes on the market during the pandemic to feel more comfortable listing their homes for sale, which would alleviate pressure on home prices.”   

Other key points from C.A.R.’s April 2021 resale housing report include:

• At the regional level, all major regions saw sharp sales gains in April, with each region growing more than 38 percent from last year. The San Francisco Bay Area had the highest year-over-year increase of 101.4 percent, with five of its nine counties growing by triple digits from a year ago. The Central Coast came in second with an increase of 81.7 percent, followed by Southern California (65.5 percent), the Central Valley (39.8 percent), and the Far North (38.8 percent).
• Nearly all counties — 49 of 51 — tracked by C.A.R. recorded a year-over-year sales increase in April, with 31 counties increasing more than 50 percent from a year ago and 11 counties growing by triple digits. Six of the counties with a growth rate of over 100 percent year-over-year had a median price above $1 million in April 2021. Mono had the sharpest gain of 233.3 percent from last year, followed by San Francisco (165.7 percent), and Marin (139.3 percent). Counties with an increase from last year had an averaged gain of 70.7 percent in April, compared to 32.9 percent in March. Sutter (-6.3 percent) and Del Norte (-4.3 percent) were the only counties with a sales decline from last year.
• Sales growth remained concentrated in higher-priced markets, while home sales in the lower-end continued to be lackluster. The million-dollar segment increased in demand by more than 200 percent year-over-year, with sales of homes priced $2 million and higher surging over 300 percent from a year ago. Sales of properties priced below $300k, on the other hand, continued to fall precipitously, with the year-over-year growth rate dropping 34 percent in April. Tight housing supply continues to be the primary constraining factor for sales in the lower price segment.
• New record median prices were set in all major regions in April, with each region growing more than 20 percent from last year. The Central Coast region continued to have the highest year-over-year gain of 40.8 percent, followed by the San Francisco Bay Area (35.6 percent), Southern California (28.6 percent), the Central Valley (25.5 percent) and the Far North (22.8 percent).
• All 51 counties tracked by C.A.R. reported a gain in median price on a year-over-year basis, with 48 of them increasing more than 10 percent. San Mateo County became the first county to smash the $2 million price point in April. Santa Barbara had the largest price growth of 83.3 percent in April, followed by Tehama (66.4 percent) and Plumas (58.4 percent). Twenty-nine counties set a new record-high median price in April. Mariposa had the smallest price growth of all counties with a 4.0 percent increase from April 2020, followed by San Francisco (5.9 percent), and Glenn (7.3 percent).
• The Unsold Inventory Index (UII) dropped to 1.6 months in April from 1.7 months in March and was down sharply from a year ago, when there was 3.4 months of housing inventory. The index indicates the number of months it would take to sell the supply of homes on the market at the current rate of sales.
• Active listings continue to fall more than 50 percent in April from last year, recording four straight months that housing supply was cut in half from a year ago. The ongoing decline in inventory is due partly to the surge in demand in the past 10 months, but the lack of new listings is also a contributing factor. While new active listings did experience a robust year-over-year growth from last April due to the pandemic shutdown, the level of newly added supply is still significantly below the pre-pandemic level. On a month-to-month basis, for-sale properties inched up by 7.4 percent in April and should climb further in the coming months if the market follows its typical seasonal pattern.
• All but one of the 51 counties tracked by C.A.R. experienced a decline in active listings from last April, with 34 of them dropping 50 percent or more from a year ago. Yolo had the biggest dip with active listings plunging 71.4 percent year-over-year, while Yuba came in at a close second with a 71.3 percent decline from a year ago. San Francisco (22.7 percent) was the only county in California with an increase in active listings from the prior year. 
• The median number of days it took to sell a California single-family home hit another record low of 7 days in April, down from 13 days in April 2020.
• C.A.R.’s statewide sales-price-to-list-price ratio* posted a record high in April at 103.3 percent and was 100 percent in April 2020.
• The statewide average price per square foot** for an existing single-family home remained elevated. At $383, April’s price per square foot was an all-time high. The price per square foot was $284 in April a year ago.
• The 30-year, fixed-mortgage interest rate averaged 3.06 percent in April, down from 3.31 percent in April 2020, according to Freddie Mac. The five-year, adjustable mortgage interest rate was an average of 2.81 percent, compared to 3.31 percent in April 2020.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS^® throughout the state and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its last list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 50 counties.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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In fact, the Leading Indicator of Remodeling Activity (LIRA) projects the remodeling industry will be even stronger in 2021, up 3.8% compared to 2020. During the pandemic, homeowners have fixed up or added on decks, updated landscaping and installed new roofs, among other projects. According to HomeAdvisor’s latest annual State of Home Spending report, the number one completed project was interior painting – 35% of households painted in 2020, making a visual impact with a low investment.

What’s on your to-do list? If you’re considering an upgrade but not sure where to start, check out the results of a national survey by Erie Insurance, conducted prior to the pandemic, which revealed what homeowners don’t have, but wish they did. Here are the top five:

1. Walk-in pantry: This topped the list with just under a third of respondents (30%) saying they wish they had one. Kitchen renovations are typically on wish lists, and Houzz reported that demand for kitchen remodelers was up 40% in June 2020 compared to the year prior.

2. Granite countertops: 17.8%

3. Kitchen island: 16.8%

4. Tankless water heater: 16.4%

5. Finished basement: 16.2%

Regardless of the new features or upgrades you choose, it’s important to let your insurance agent know so you can make sure you have enough homeowners insurance coverage. “We understand how important the home is; that’s why we provide coverage to suit every home and budget,” says Bob Buckel, vice president and product manager at Erie Insurance. “Our variety of optional endorsements helps you customize your policy without breaking the bank.” Consider expanding your coverage beyond the standard homeowners policy with endorsements – like equipment breakdown to cover that new tankless water heater.

They can also cover stolen or misplaced jewelry, sewer or drain backups, cyber-crimes, identity theft and underground service lines.

Adding these extra coverages to your home policy can provide you with the comfort knowing all the extra work you put into sprucing up your home will be protected. To make sure you have what you need for your home and everything in it, talk to an insurance agent or visit ErieInsurance.com.

Making home updates can be as big or small an endeavor as you like. If you do take the plunge, be sure you protect your investment.

StatePoint • Contributed

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Here’s how it works: Homebuyers use an RBN participating agent for their home purchase and they can earn American Express Membership Rewards® points up to the purchase price of the home. Larry and Myra of North Carolina recently earned more than 500,000 reward points with RBN. “We enrolled with RBN and were put in touch with Thomas Wohl, Broker, Realtor and it’s probably the best decision we ever made. Thomas was not just interested in us buying a house, but rather we bought the RIGHT house for us.”

The home purchase itself follows the traditional real estate process of cash or mortgage financing. Founder Kipp Lassetter says, before prospective homebuyers get started, before touring any homes, before interviewing any other agents or doing anything in the home buying process, they need to visit RBN’s site. “Choose from the most qualified participating agents, buy their home through the traditional real estate process and earn rewards. Using an RBN participating agent is a no-brainer.”

Lassetter was inspired to found RBN after his own home buying experience, in which he struggled to find a real estate agent with expertise in local neighborhoods and a willingness to go the extra mile on service and support. RBN fills this niche by partnering with the best local agents and rewarding homebuyers for selecting these agents. “Each participating agent endures a rigorous vetting process that includes a one-on-one interview and review of sales performance,” Lassetter says.

Home purchasers have already earned millions of rewards points using RBN participating real estate agents. If you don’t have an existing American Express account, don’t worry. The RBN virtual wallet tracks and maintains your points until you connect to an eligible account. Visit joinrbn.com for more information and to connect with an RBN participating real estate agent in your area.

NewsUSA • Contributed

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In fact, you shouldn’t expect a real-estate deal to go fast. That’s because buying property is less like swiping your credit card during a Black Friday sale and more like preparing a Thanksgiving feast for the family. The process involves a variety of steps, each of which needs to be done right, if you want a happy result. One of the most important steps in that process is known as due diligence.

During it, you will want to investigate the property to make sure you are getting exactly what you expect before money changes hands. First, figure out who actually owns the property. Obvious, right? But people occasionally buy property from people who don’t actually own the property.

In some cases, a seller mistakenly believes that they own the property. For example, a family might agree on how to distribute property after a loved one passed away without going through the probate process. And then later memories change, leaving ownership disputed. In less-innocent cases, the seller is lying. They tell you that the property has been in their family for years; they may even cry over the idea of parting ways with it.

But they assure you that if you pay right away, they will let it go. The easiest and safest way to find out whether the seller actually owns the property is to obtain a preliminary title report. A PTR is not a government document; instead, it is a report issued by a title-insurance company describing the chain of ownership from the first owner to the current owner. It will also say if the property has been leased and whether there are any mortgages or other liens on the property.

You should get this document directly from the title-insurance company, especially if you have any doubts about the seller. On Saipan, two companies currently issue PTRs: Security Title and Pacific American Title. The first is located on Capital Hill; the second is in Susupe. Second, double-check the property’s boundaries. Just because a seller claims that a property has certain boundaries doesn’t make it so. Take a common example.

Let’s say a father owns a big chunk of land and then passes away, leaving five children. Following probate, each child gets one-fifth of the land. Over 20 years, each uses the land with little thought about the formal boundaries of each property. Later, one of the children sells their piece to someone outside the family. What happens next? That’s right: Disagreements about where one property ends and the other begins.

And those disagreements can turn especially expensive if there’s a house built over the boundary line, a surprisingly common occurrence. So, how does a careful buyer prevent boundary problems from transforming their investment into a nightmare? Get a boundary survey from a seasoned surveyor. Doing so will confirm access points and boundary lines as well as identifying any encroachments.

Third, make sure that you can use the property for the purpose you intend. You may not be able to. That is because Saipan has a zoning law establishing how different areas of the island can be used. For example, if a part of the island has been designated as a residential area, then it generally cannot be used for a nonresidential purpose like a hotel, a hospital, or a factory—although occasionally the Zoning Board or the Legislature may grant an exception. Other zoning restrictions may also apply. The Zoning Law is long and detailed with many technical requirements stretching from how far to set back buildings from roads, boundaries, and high watermarks to how much parking is needed to how much of a storefront window can be used for advertisements.

Fourth, investigate whether the property has any environmental issues. For instance, is there a wetland on the property? If so, CNMI law strongly restricts and sometimes flatly prohibits development. Is the property in a floodplain? Again, development restrictions may apply (on top of all the other issues that apply to building in a flood-prone location). Are there any endangered animals on the property? If so, you will need to reach into your wallet to pay remediation costs.

You may also need to halt your project until the issue has been addressed, a process that can take half a year or more. Fifth, check whether the property is part of a planned community. Though more common in the U.S. mainland than here, the CNMI has some planned communities too. For example, if you buy a condo, an apartment, or a house that’s part of a subdivision, community rules often apply to everyone in the planned community.

These rules can strictly control where you can park, how you decorate your property, and so on. So you’ll want to know what you are getting yourself into before you buy. This column is for informational purposes only and is not intended to be taken as legal advice. For your specific case, consult a lawyer

-Jordan Sundell

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To get you started, Wells Fargo Home Lending is providing these insights:

• Assess your readiness: “The decision to buy is personal. Take into account your goals and financial circumstances,” says Greg Murray, VP, national client relationship manager/military program. “Interest rates are at historic lows, so if you feel financially ready, this is a great time to look.”

If you decide to move forward, it’s important to be realistic about what you can afford, and having a rainy day fund is a good sign of your readiness. COVID-19 has reinforced the reality of unexpected economic ups and downs. So, don’t overextend yourself in buying. Leave yourself with the ability to weather economic cycles and afford run-of-the-mill expenses for home repairs.

• Build your team: Enlist a home mortgage consultant who can help you navigate the process, as well as discuss financing options that fit your needs. “Consider working with a military lending specialist who can help you make the most of the home loan benefits you’ve earned,” says Murray.

To get a better understanding of the local market, as well as the impact the pandemic may be having on home sales, lean on your real estate agent.

• Know your down payment options: Not all financing options require you to put 20 percent down. For military service members and veterans, VA loans provide low- and no-down payment options for qualified borrowers, and don’t require monthly mortgage insurance. Other low down payment options to explore include Wells Fargo’s yourFirst Mortgage program, as well as FHA and rural lending programs. However, it’s important to understand that more money down could reduce your monthly payments and interest paid over the life of the loan, and may also eliminate the need for private mortgage insurance or reduce your funding fee on a VA loan.

• Leverage digital tools: At a time when health and safety is top-of-mind, digital tools can offer a contactless experience. While a recent realtor.com survey indicates that 63.6% of consumers looking for a home want to see a property in person before buying, many start the hunt online, and now you have better opportunities to do so. In an effort to keep clients safe, many realtors offer home walk-throughs using video chat apps.

When it comes to the mortgage process, lenders like Wells Fargo offer time-tested digital tools allowing you to handle many aspects of the process remotely, including signing disclosures, uploading documents and simply getting started. In the first six months of 2020, 53% of the lender’s VA applications came through the online mortgage application. To contact a home mortgage consultant, visit wellsfargo.com/military. To access free resources that can help you be a savvier home shopper, visit Wells Fargo’s educational page, myfirsthome.wellsfargobank.com. Also be sure to visit www.va.org for instructions to get a “Certificate of Eligibility,” the first step to getting a VA-backed loan and a key document in using VA loan benefits.

Whether you wish to take advantage of historically low interest rates or you’re spending more time at home and want a larger space to accommodate the new normal, leverage as many resources as you can. For military personnel and veterans especially, rest easy in knowing there are resources available to simplify the process.

-StatePoint

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From home-buying grants to veterans’ home buying-assistance programs, there are lots of resources available to military members and veterans looking to purchase a home. Our VA home buying guide breaks it all down.

Homeownership has long been an integral part of the American Dream for many people. That includes military members and veterans who have sacrificed so much to protect that dream.

But buying a new home is no simple feat—whether you’re a first-time homebuyer or experienced when it comes to homeownership. Fortunately, service members have access to a few unique programs that can alleviate that burden and make achieving the American Dream easier. This VA home loan guide will explain it all.

Pros & cons of homeownership

Homeownership certainly comes with some key opportunities, but it’s not without difficulties. Make sure to consider both sides carefully before making any moves.

Pros

You can build equity: No more throwing rent into the proverbial black hole. With each mortgage payment you make, you gain a larger stake in your property—and its sales profits later on.

You can alter your home as you wish: Forget landlord rules about paint colors, nail holes, and other alterations. As part of homeownership, you can make any changes to your property you see fit.

You’re eligible for certain tax deductions: Homeowners get to leverage tax deductions for their mortgage interest, property taxes, home office costs, and other expenses, in certain cases. Some of these write-offs aren’t available for renters.

Cons

You’re responsible for all maintenance: One of the biggest perks of renting is that the bulk of your repair and maintenance tasks fall on the landlord. When you own a home, these tasks (and their costs) are up to you.

You’ll have additional expenses: A home comes with a number of expenses that just aren’t there with a rental—things like property taxes, HOA dues, maintenance costs, closing costs, and more. You may also have to pay for private mortgage insurance (PMI), depending upon the terms of your home loan.

It’s often a long and daunting process to buy a home: It can take a significant amount of time and energy to buy a house. You have to get your finances in order, apply for a mortgage, find the right property, get it inspected, and complete a number of other to-dos before the home is yours.

Veteran Home Buying Assistance: Tips & tools to know about

If you’re set on buying a home, there are a number of veteran assistance programs you can leverage along the way. See below to learn more about each one.

VA loans

VA loans are mortgages just for veterans, military members, and their spouses. To qualify, you need to meet certain military service requirements set by the Department of Veterans Affairs. Some Reservists and members of the National Guard may also be eligible for VA loans.

If you’re considering using the VA loan program, check out current VA mortgage rates or look to our guide on the best VA lenders to get you started.

VA loan process

To get a VA loan, you’re going to need a Certificate of Eligibility from the VA, which essentially proves you meet the service requirements to qualify for the loan. To get your COE, you need to head to your eBenefits account and apply there. It can often take more than a month to receive this document, so apply well ahead of your planned home purchase.

Once you have a COE in hand, you’ll need to get pre-approved for your VA loan with a mortgage lender. Be careful here: Not all lenders offer VA loans, so make sure the one you’re considering offers them before submitting an application.

After you’ve been pre-approved, you can find the right property, sign your sales agreement, and fill out your lender’s full application. In addition to your COE, you’ll need to provide various financial documents (bank statements, W-2s, paystubs, etc.), as well as submit to a check of your credit score.

How to buy a house with a VA loan

The exact underwriting and approval process for your VA loan will depend on your mortgage lender, but you can generally expect it to take anywhere from four to six weeks.

You’ll need to submit your application, provide all the requested financial documentation, and work with your VA loan officer to address any concerns that might crop up along the way. Your home will also need to be appraised by a VA-approved appraiser to make sure it meets certain safety requirements.

Finally, at closing, you will need to pay your VA funding fee, a one-time payment on the VA loan designed to offset the cost of the loan program to U.S. taxpayers. You can also choose to roll this into your loan balance. VA loans are the only type of mortgage product that requires a funding fee (most others require mortgage insurance).

VA renovation loans

VA renovation loans allow you to purchase a home and fund its rehabilitation and renovation all at once. You can also use a VA renovation loan if you want to refinance your existing mortgage to help fund any upgrades or repairs your property may need.

Though VA renovation loans are fairly flexible, they can only be used to tackle certain approved renovation projects, so make sure yours are on the list before choosing one of these loans for your property. Our guide to VA renovation loans can help.

GI Bill

The GI Bill is designed to provide service members returning home from active duty with much-needed education and training as they restart civilian life. It affords vets money for tuition and educational fees, as well as a monthly housing allowance while they attend school.

How to use the GI bill to buy a house

Naturally, many veterans wonder if they can use their GI Bill housing allowance to buy a home of their own. Unfortunately, for the most part, lenders won’t consider your GI income when qualifying you for your home loan—largely because it’s short-term. To prove you have the capability to repay your home loan, lenders generally want to see consistent, long-term income.

You could find a rental property for less than your monthly housing allowance, though, saving the leftovers to put toward a down payment, closing costs, or other fees associated with your home purchase. This could help you buy a home sooner or achieve a lower monthly mortgage payment.

Dream Makers program

The Dream Makers program is a grant program that veterans and military members can use to lower the costs of buying a house. It offers up to $5,000 in matching grants to be used toward closing costs or a down payment.

The total amount for which you can qualify depends on the earnest money and down payment you put up. The program will match your contribution at a 2-to-1 rate. Your down payment has to total at least $500, and applications can be submitted through the PenFed Foundation.

Special Housing Adaptation grant

SHA grants can be used to buy, build, or update your permanent place of residence in order to accommodate a service-caused disability. You can apply for up to three grants, totaling $17,130.

To be eligible, you or your veteran spouse must have one of the following service-related injuries:

Loss (or loss of use) of both hands

Severe burns

Severe respiratory or breathing injuries

Blindness in both eyes

Specially Adapted Housing grant

If you’re living with a loved one (i.e., not on your own property), then you can use a SAH grant to increase the home’s accessibility. These grants offer up to $37,596 in assistance.

To qualify, you need to have one of the service-related disabilities noted above (under SHA grants) and be living temporarily in a family member’s home.

State-based programs

Many states also offer veteran and military homebuying assistance programs, so be sure to check with your state housing agency, too. In Texas, for example, veterans’ down payment assistance is offered through the Texas State Affordable Housing Corporation.

Aly J. Yale is a freelance writer and journalist from Houston, specializing in mortgage, real estate, and personal finance topics. Her work has been published in Forbes, The Balance, Bankrate, The Simple Dollar, and more. Connect with her on Twitter.

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