What You Need to Know about VA Loan Requirements in Massachusetts
The United States Census Bureau estimates that there are approximately 21.8 million veterans of the United States armed forces. They have served our country and made numerous contributions to our communities, and as a way to thank them, the United States Department of Veteran Affairs established VA home Loans as a way to help them purchase a home.
These loans, which are available across the country, make the home-buying process easier and, in many cases, more affordable for our veterans. However, each state has its own set of rules and standards for VA loan eligibility.
The average VA home loan in Massachusetts is $327,778 according to Veterans United. That mortgage could be prohibitively expensive for many home buyers without the benefits of a VA loan. However, for those looking to buy in New England, the following are some of the advantages of a VA mortgage loan in Massachusetts:
- No down payment
- No cash reserves
- No application fee
- No monthly mortgage insurance premiums
- VA funding fee may be financed
- Seller can pay certain closing costs thus decreasing the closing costs for borrower
- Low interest rates compared to other loans
- Similar qualification standards to conventional loans
But to fully understand the VA Loan Requirements in Massachusetts we must first understand the basics of the VA Loan Program.
So what exactly is a VA Loan?
VA loans are private lender home loans that are guaranteed by the United States Department of Veterans Affairs. They require no down payment, which can make the prospect of purchasing a home less intimidating. Keep in mind that, while there is no credit score requirement for the VA, most lenders have a minimum. Dovetail Mortgage’s VA loan experts will work with you to determine the specific Massachusetts requirements.
Because this loan program is backed by the federal government, VA mortgages do not require private mortgage insurance, even if you put down 0%. Borrowers also benefit from competitive interest rates and are more likely to qualify for financing as a result of the government guarantee.
What Are The Various Types of VA Loans
VA loans can be used for more than just home purchases. While a traditional mortgage is the most common type of VA loan, there are four other types of financing available to veterans.
Purchase loan – The standard home loan for veterans and active service members that can be used to buy a home in Massachusetts.
Refinancing loan – These loans allow you to refinance and access funds equal to up to 100 percent of the equity in your home.
Renovation loan – this type of financing allows you to borrow money to update or renovate a home that you already own or plan to buy. Even better, the financing amount is based on the property’s “after-improvement” expected value, and borrowers can finance up to 100 percent of their projected home equity.
Reduced Interest Rates Refinance loan – This loan allows borrowers with an existing VA loan to obtain a line of credit without the need for a home appraisal or income documentation.
Qualifying for a VA Loan in Massachusetts: The Minimum Requirements
The VA loan program was established for the benefit of American veterans and active military personnel. Spouses or citizens who served in other federal organizations, on the other hand, may be eligible.
To confirm your eligibility, you must apply for a VA home loan, but you can do a quick check for yourself if you believe a VA loan in Massachusetts is right for you.
- Serve for a minimum of 90 days during a time of wat
- Served for 181 days during a time of peace
- Served for 6 years or more in the National Guard or Reserves
- You are the spouse of a servicemember who was killed in the line of duty or in a service-related incident.
In Massachusetts, there are no VA loan maximum dollar amounts. However, Ginnie Mae (GNMA) imposes restrictions on loans purchased on the secondary market. To learn more about VA loans and how to apply for one in the state of Massachusetts please contact Dovetail Mortgage today.
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