Veterans have use of VA loans offered by private lenders but guaranteed by the federal government. The guarantee insures mortgage companies from loss up to a specific amount if a borrower defaults on the loan. Because of this guarantee, lenders are able to extend veterans options not easily found in other financing. The following is an overview of the benefits of VA loans in MA.
Benefits Of VA Loans In MA
The best features of VA loans are the options for no money down and no mortgage insurance. Veterans can finance the full price of a property being purchased, if the appraisal is sufficient and the particular lender does not require otherwise. VA loans also allow veterans to purchase a home by removing the added cost of mortgage insurance, which is typically included in loans with less than twenty percent down. Other important benefits are…
- Similar closing costs to other types of loans.
- VA mortgages are assumable.
- No pre-payment penalty.
- Ability to roll in or reduce the VA funding fee for the home loan.
Qualifying for VA Loans
To qualify for a VA mortgage, veterans must fit a few criteria. The first set involves their service – war served, type of service, and length of time served. The second set involves the normal credit report and financial requirements by mortgage companies. Veterans can contact any lender offering VA mortgages to determine eligibility and obtain a pre-approval.
With a pre-approval in hand, buyers can then begin touring properties within their price range. Once a home is identified, an offer should be submitted contingent on approval for VA financing. With a contract to purchase, buyers will then formally apply for a loan and lock in an interest rate. Once the application is approved, a closing can take place. After closing, the VA is notified. Veterans may only maintain one current VA mortgage at any given time.
This blog is merely an introduction to the benefits of VA loans in MA. For more information on this program, contact Christopher Graves at Emery Federal Credit Union via phone at 781-759-1200 x22 or email christopher.d.graves@gmail.com.