Veterans have use of VA financing offered by individual lenders but guaranteed by the VA. The guarantee protects mortgage companies against loss up to a specific value if a homeowner forecloses on a property. With this guarantee, mortgage companies can extend veterans options not easily found in other alternatives. Below is an overview of the benefits of VA financing in MA.
Benefits Of VA Financing In MA
The most well-known advantages of VA financing are the options for no down payment and no mortgage insurance. Veterans can borrow up to the full price of a home being purchased, if the appraisal is sufficient and the particular lender does not require otherwise. VA financing also allow veterans to afford purchasing a property by eliminating the additional cost of mortgage insurance, which is traditionally included in mortgages with less than twenty percent down. Other important advantages are…
- Comparable closing costs to other loan programs.
- VA mortgages are assumable.
- No pre-payment penalty.
- Ability to roll in or reduce the VA funding fee for the home loan.
Obtaining VA Financing
To obtain a VA mortgage, buyers must fit a few requirements. The first set pertains to their service – war served, nature of service, and amount of time served. The second set involves the normal credit score and financial considerations by mortgage companies. Veterans can call any lender offering VA mortgages to determine eligibility and request a pre-approval.
With a pre-approval ready, veterans should then begin touring listings within their price range. Once a property is identified, an offer should be made contingent on VA financing approval. With a contract to purchase, veterans will then apply for the loan and lock in an interest rate. Once the application is approved, the next step is the closing. After closing, the VA is notified. Veterans are only allowed one active VA loan at any given time.
This blog is merely a brief overview of the benefits of VA financing in MA. For a list of mortgage companies providing VA financing, contact Ken Chase at New Wampum Custom Homes at 617-928-1900 or email@example.com.