Veterans have use of VA loan programs granted by individual lenders but guaranteed by the VA. The guarantee buffers lenders against loss up to a certain value should a homeowner forecloses on a property. Because of this guarantee, mortgage companies can give veterans features not readily obtained through other financing. Below is an overview of the benefits of VA loan programs in MA.
Benefits Of VA Loan Programs In MA
The most well-known advantages of VA loan programs are the options for no down payment and no mortgage insurance. Veterans can borrow up to the full purchase price, that is assuming the appraisal is sufficient and the particular mortgage company does not require otherwise. VA mortgages also enable veterans to purchase a home by reducing the additional monthly expense of mortgage insurance, which is typically required in loans with low down payments. Other notable benefits are…
- Similar closing costs to other loans.
- VA mortgages are assumable.
- No pre-payment penalty.
- Ability to roll in or reduce the VA funding fee for the home loan.
Obtaining VA Loan Programs
To obtain a VA loan, buyers must fit a few requirements. The first set pertains to their service – when time was served, type of service, and length of time served. The second set involves the typical credit report and financial requirements by mortgage companies. Veterans may contact any bank offering VA loans to determine eligibility and request a pre-approval.
With a pre-approval ready, buyers should then begin viewing homes within their price range. Once a home is found, an offer can be submitted contingent upon VA financing approval. With an accepted offer, veterans will then complete a formal application and lock in a rate. Once the application is approved, a closing can take place. After closing, information is sent to the VA. Veterans can only maintain one active VA mortgage at a time.
This article is merely an introduction to the benefits of VA loan programs in MA. To be directed to a local bank offering VA loan programs, contact Bradford Pratt at REMAX on the Charles at 781-316-5760 or firstname.lastname@example.org.