Are you or have you been in the U.S. military? Would you like to buy a house someday but you’re not sure whether you have the finances to do it?
Veterans’ Legal Rights
Anyone on active duty in the military is protected by the Servicemembers Civil Relief Act (SCRA). According to military.com, f you are on active duty, the SCRA:
- Prevents your landlord from evicting you unless the rent is higher than $3,716.73 per month for 2018 (this amount changes every year).
- Stops foreclosures without a court order.
- Lets you end a housing lease without penalty if you deploy for 90 days or more.
- Also, it says that if you use any of your SCRA rights and delay payments, it won’t reflect on your credit report.
These protections will put you in a better position when you are thinking about buying a home. You will look like a better buyer (to sellers) and a better borrower (to mortgage originators).
You should also know that just like race, religion, nationality, and source of income, veteran status is a protected class under the Fair Housing Act in some states (including Massachusetts). You cannot be discriminated against because some lender or seller has stereotypes about veterans in their minds.
Of course, none of those protections matter if you don’t have the money to buy. So, here’s a
resource for you from bankrate.com, Managing Your Finances Before & After Deployment.
Here’s how they describe what you’ll find in the guide:
To address the unique financial challenges that service members and their families face, we created a guide that provides specific pre- and post-deployment financial considerations and explains how to maximize your deployment income by leveraging service-related benefits, such as:
- Tax-free Pay
- Thrift Savings Plans
- Savings Deposit Programs
If that sounds like a lot of jargon, you’re right! But read the guide and see which pieces of it you can use to protect your income and your family, before and after active duty.
Happy Veterans’ Day from 4 Buyers Real Estate. May you all return safe and sound.