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Closing Cost Grants For Veterans: How To Get It

Closing cost grants for Veterans! Frustrated that you do not own a home yet as a US Veteran? See how to apply for closing cost grants today!

If you are here, it is probably because you do not yet own a home as a US veteran.

That is sad, given that when your country called, you sure answered, and flew the flag of this country with pride.

Hey! You are a hero and you deserve the best that life has to offer.

One of the good things you deserve, is shelter- a good roof over your head won’t hurt, eh?

After all, you have paid the ultimate price to keep us all safe, it is only normal that you live in comfort after your commitments.

But if this has not happened for you, then here is a guide to help you own your own home.

Better late than never, eh?

So, what are closing cost grants for veterans?

Table of Contents

About Closing Cost Grants For Veterans

If you doubt that you can still own your own home, then doubt no more. Because with closing grants for veterans, it is still a possibility!

The US government offers a variety of grants to veterans like you. These closing cost grants for veterans are designed to help you with the costs associated with buying and owning a home.

The most relevant of these grants, are the Closing Cost Grant and Veterans Affairs (VA) Loans. These two programs can offer you up to $6,000 in non-repayable funding, if you are eligibe.

Here’s a quick breakdown of each program:

The VA Loan Program

The VA Loan Program is designed to help veterans purchase or refinance a home. It’s designed as an alternative to traditional loans because it is guaranteed by the VA and has no down payment requirement.

In fact, it is a home mortgage provided by the United States Department of Veterans Affairs. And it caters the needs of eligible U.S. military veterans or their spouse who are purchasing a house.

Unlike conventional loans which usually require at least 10% down payment, the VA loan program requires no down payment.

But that does not mean that these loans are easy to get. The VA needs your credit score to be 750 or higher, which is much higher than what a lot of banks require.

If you qualify though, you typically do not need to pay money out of pocket for your VA loan closing costs.

But, what can you do in the event that you do not qualify for a VA Loan?

There is still a way to increase your chances of getting approved for a VA loan even with a low credit score.

Are you wondering how?

Well, it is by taking advantage of the Closing Cost Grant for Veterans (CCGV)!

The Closing Cost Grant Program

The Closing Cost Grant, much like the VA Loan Program, is also meant for veteran homeowners looking to purchase or refinance a home. Closing cost grants for veterans provides you with thousands of dollars in non-repayable funding, at no extra cost to you.

Non-refundable means you do not have to pay back, as the money is a gift!

Meanwhile, the funding may cover some, or all of your closing costs when purchasing or refinancing your home. There is a clause here though.

Which is that your payment will be made through an approved partner of the VA.

That there is one big advantage of Closing Cost Grants over the VA Loan Program.

READ ALSO: The Best School Resource Officer Grants in the US

Closing Cost Grants For Veterans: How Does It Work?

At this stage, you must be wondering how closing cost grants for veterans work, and if there are any downsides to it.

Here is a breakdown of how closing cost grants work!

The US Department of Veterans Affairs offers closing cost grants for veterans, to help you own your dream home.

These closing cost grants for veterans are meant to cover some of the costs that are involved with purchasing your home.

On the part of the the VA, they estimate that these closing cost grants will cover about half of your expenses.

However, they have placed a 15% cap on the amount that can be granted at any one time.

To make the process for you, the VA provides three different types of closing cost grants for veterans. Each type has its own eligibility requirements:

  • The first type covers the down payment and other costs until you have paid off your VA loan in full, usually over a period of 25 years.
  • The second type covers up to $6,500 in other necessary expenses. Such expenses may include fees for an attorney, appraiser, and others who assists you in purchasing a home.
  • The third type is for eligible veterans who incurred unreimbursed relocation expenses associated with their military service. Such relocation expenses may include the cost of moving household goods from your previous residence to a new one. It may also include the cost of buying or renting temporary quarters while waiting for permanent housing to become available.

Pros and Cons of Closing Cost Grants For Veterans


-Ability to purchase a home with low down payment.

-No credit score requirement for individuals who have served in the military for more than 90 days in the last 12 months.

-No monthly mortgage insurance premiums


-Your purchase limits will be determined by available VA loan amount, which is not fully guaranteed by the government.

-Loan term can be as long as 30 years or as short as 15 years, depending on how much you want to pay back each month

However, veterans applying for the closing cost grant must be aware that there is a VA funding fee for all VA loans.

About the VA funding fee?

The VA funding fee is a one-time charge that applies to you as a veteran, on any VA loan. Also, service members, or their survivors must pay this fee to apply for a closing cost grants for veterans.

This fee helps to reduce the cost of the loans for other taxpayers since the beneficiaries of the VA Loan program do not pay down payments or monthly mortgage insurance.

as a veteran, you will be required to pay the VA funding fee if you are using a VA home loan to buy or repair your home.

However, you will not be required to pay the fee if:

  • You are receiving VA compensation for a service-connected disability, or
  • You are eligible to receive VA compensation for a service-connected disability, but you’re receiving retirement or active-duty pay instead, or
  • If you are the surviving spouse of a Veteran who died in service or from a service-connected disability, or totally disability. And you are receiving Dependency and Indemnity Compensation (DIC),

READ ALSO: How to Access Grants As a Stay-At-Home Mother

Who Is Eligible For The Grant

In order to qualify for the closing cost grants program for veterans, you need to meet certain requirements like:

– You must have an active credit history that has been updated with your most recent employer over the last two years;

– If you have any debts, it must be at or below the limits set by the VA, and still show on your credit report;

– Your Income must be sufficient enough so as not to exceed the maximum income limits set by the VA;

– You must have completed at least one year of military service

For more on eligibility criteria to qualify for closing cost grants for veterans, see here

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