Veterans have the option of obtaining VA home loans granted by individual mortgage companies but guaranteed by the federal government. The guarantee protects lenders against loss up to a specific dollar amount should a borrower go into foreclosure. With this guarantee, mortgage companies are able to extend veterans options not readily available with other financing. Below is an introduction to the benefits of VA home loans in Burlington MA.
Benefits Of VA Home Loans In Burlington MA
The most well-known features of VA home loans are the options for no down payment and no mortgage insurance. Buyers can borrow up to the entire purchase price, if the appraisal supports the price and the individual lender does not require otherwise. VA mortgages also allow veterans to buy a home by eliminating the additional monthly expense of mortgage insurance, which is normally included in mortgages with low down payments. Other important advantages are…
- Similar closing costs to other loan programs.
- VA loans are assumable.
- No pre-payment penalty.
- Ability to roll in or lower the VA funding fee for the mortgage.
Qualifying for VA Home Loans
To obtain a VA loan, buyers must fit two sets requirements. The first set pertains to their actual service – when time was served, nature of service, and amount of time served. The second set involves the normal credit report and financial analysis by lenders. Veterans can contact any bank offering VA loans to determine eligibility and obtain a pre-approval.
With a pre-approval completed, buyers can then start viewing properties within their price range. Once a property is identified, an offer will be made contingent upon VA financing approval. With a contract to purchase, veterans 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 loan is reported to the VA. Veterans are only allowed one active VA loan at a time.
This blog is simply a brief overview of the benefits of VA home loans in Burlington MA. For a list of lenders providing VA home loans, contact Peter DaMore at Law Offices of Peter T. DaMore Jr. at 781-229-7900 or firstname.lastname@example.org.