VA Home Loans In Maine, Use That Elegibility Certificate.

By
Real Estate Agent with MOOERS REALTY ME Broker License 106759

You want a Maine home, have served Uncle Sam in the armed services, are a full fledge, real McCoy veteran so tap in to the benefits earned to buy a house.

world war two flag raising photo You have earned it and VA loans backed by the Veteran's Administration are one easy, lower cost way to get the set of keys to the Maine home of your dreams. Stop renting, start owning your own Maine home.

To get a loan for a Maine home these days, the ability to get financing can make or break getting a seat at a the long conference room real estate closing table.

Back in 1944 the VA loan came about because Uncle Sam set up the GI Bill of Rights to help Maine home buyers, others in the nation.

FDR inked the document to make it official.

The paperwork guaranteed a Veteran a home loan with no down payment.

Back at a time when 20 to 25% was the norm for down payments to get to roll the dice in the "own your own Maine home" game. No other program helped Veterans more and provided a bigger thank you for service than the GI Bill. Helped the nation's economy big time too. Did way way more than just providing the veterans a Maine home for raising their families.

In our travels I meet lots of Maine home buyers who have the VA elegibility certificate tucked away in a safe place, but never pulling it out to use it for what it was intended.

To earn more favorable terms for buying a Maine home than others that did not serve, who were not veterans.

Mixing, blending it for first time home buyers is one extra special program too with the Maine State Housing program.

Get asked a lot about whether the National Guard service gets you the VA certificate or not too.

Let's clear up the Maine home buying confusion in this area.

There is a six year requirement for National Guard and reservists with certain stipulations, rules for the elegibility of surviving spouses too.

So call, click, come visit us to go over the fine print.

houlton maine veterans memorialEligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime.

There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981.

VA will guarantee a maximum of 25 percent of a home loan amount up to $104,250, which limits the maximum loan amount to $417,000.

You won't need that much horsepower, that many zero places filled to buy a Maine home though.

Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. All veterans must qualify, for they are not automatically eligible for the program.

Maine VA guaranteed home loans are made by private lenders, banks, savings & loans, or mortgage companies to eligible veterans. The Maine home purchased must be for the veterans own personal occupancy, not to be used for rental income by others. The guaranty means the Maine home lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

We have the Maine home selection and are excited to roll up our sleeves, help a Veteran get their own place. Call, click, visit. And scope out our Maine homes to stop flushing cash down the drain as a renter. Turn the tables on your landlord. Tap in to the privledge earned by using your earned Maine VA home loan buying certificate.

Here is the skinny on VA Funding Fee for Loans Closed on or after October 1st, 2011 until October 1st, 2012

The VA funding fee is required by law. The fee, currently 1.40% on no down payment loans for a first-time use, is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users who do not make a down payment is 2.8%.

The idea of a higher fee for second time use is based on the fact that these Maine home buying veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment.

For purchase and construction loans, members of the regular military fall into the category of first time user or subsequent user. For first time users, no down payment requires a 1.40% fee, down payment of at least 5 percent but less than 10 percent requires a .75% fee, and down payment of 10% or more requires a .50% fee. For subsequent users, no down payment requires a 2.8% fee, down payment of at least 5 percent but less than 10 percent requires a .75% fee, and down payment of 10% or more requires a .50% fee.

For the category of Reserves / National Guard, first time users with no down payment requires a 1.65% fee, down payment of at least 5 percent but less than 10 percent requires a 1.0% fee, and down payment of 10% or more requires a .75% fee. For subsequent users for the category of Reserves / National Guard, no down payment requires a 2.8% fee, down payment of at least 5 percent but less than 10 percent requires a 1.0% fee, and down payment of 10% or more requires a .75% fee.

Cash-out refinancing loans for regular military require a 1.40% fee for first time users and a 2.8% fee for subsequent users. For Reserves / National Guard, the requirement is a 1.65% fee for first time users and a 2.8% fee for subsequent users. On interest rate reduction loans, the VA funding fee is .50% and it is 1.0% on Manufactured Home Loans.

The following persons are exempt from paying the funding fee:

  • Veterans receiving VA compensation for service-connected disabilities.
  • Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
  • Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).

The Veterans Administration has the last word, final say on who is actually exempt. Maine, wake up and start dreaming in blue and green.

I'm Maine REALTOR Andrew Mooers, ME Broker

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Rainmaker
2,476,809
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

  Your explanation should certainly not only answer questions...but have Veterans come running to you to sweep the Maine inventory of great homes.

Nov 13, 2011 11:23 PM #1
Rainmaker
1,785,313
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Amazing the folks that earned the right but keep it tucked away, don't use their lower cost VA Maine home loan paperwork to get a roof over their head cheaper.

Nov 13, 2011 11:30 PM #2
Ambassador
1,723,486
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Andy...

Wow, this is a great source of VA info that I am going to bookmark for future reference. Well done.

Nov 13, 2011 11:56 PM #3
Ambassador
1,888,851
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Andrew-actually the reduction of the funding fee was rescinded on October 6th for loans that closed after 10/6. It was initially only in effect from 10/1-10/6 due to an error.   The new reduced funding fee officially comes into effect on November 18, 2011.  The refinancing rates change based on when your loan originated and the amount of your down payment. You may want to check the VA.gov site versus the information on va.com which is incorrect.

Nov 14, 2011 12:06 AM #4
Rainmaker
1,246,117
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Andrew, a very good breakdown of VA benefits. I wouldn't have been able to buy a home way back, if it wasn't for this benefit. The education benefits under the GI Bill are also very good.

Nov 14, 2011 12:09 AM #5
Rainmaker
1,785,313
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Richard ... The ins and out of any program. And the rules change so keeping up on them is critical. I am amazed at the folks that have the VA certificate but are saving it for some day. Use it and blend it with your state's first time home buyer program for even more horsepower, savings.

Cindy .... Roger. Hunting down the change, correction.

Michael ... Lots of folks used the GI bill for homes, education, start up business loans. Veterans earned it.

Nov 14, 2011 12:36 AM #6
Rainmaker
782,282
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

Great timing on this  post, right after Veterans day. VA loans are becoming more popular here in Tennessee as well.  I have 3 pending right now and just got off the phone setting up a VA appraisal.  Great way to take advantage of the benefits coming to our Veterans.

Nov 14, 2011 12:41 AM #7
Rainmaker
1,785,313
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Cindy ... That's what I though. My Dad was a tail gunner in a B-24 WW II bomber, two brothers Vietnam era veterans. When you are brought up with a veteran in the house, you have an entirely different viewpoint and cherish freedom, the veteran so much more. VA loans back in the 1980's were s-l-o-w. But those days are over. Had an army recruiter that we got to the real estate closing table, all complete in 22 days flat. Not too shabby.

Nov 14, 2011 12:54 AM #8
Rainmaker
4,063,355
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

VA financing can be an outstanding mortgage financing option for those that need a zero down payment program.  Buyers with large down payments should compare VA financing with the conventional loan alternatives. The VA funding fee is the cost to consider.

Nov 14, 2011 01:41 AM #9
Rainmaker
149,363
MeLisa Minter, Realtor Better Homes and Gardens
Better Homes and Gardens, Gary Greene - Taylor Lake Village, TX
Broker, Associate, Taylor Lake Village Real Estate

This is a great post.  I did something similar last Friday, but you hit some great points; and the history lesson was a bonus!.

Nov 14, 2011 02:32 AM #10
Ambassador
1,041,867
Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Andy, Every veteran in Maine should be contacting your on their VA eligibility certificate. Some excellent information in your post and Cindy Jones has added a very informative comment too. Thanks for sharing, since I am sure this will apply to veterans in every state.

Nov 14, 2011 03:20 AM #11
Rainer
158,144
Anthony Daniels
Coldwell Banker - San Francisco, CA
SF Bay Area REO Specialist

Great information on VA loans/funding.

Thanks for sharing it with us.

Nov 14, 2011 03:31 AM #12
Rainmaker
1,785,313
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Roy ... You can say that again.

MeLisa ... Veterans, cut them some slack, Give them a better built loan program to own a home.

Jerry ... You're a Veteran First Class my man. The program knows no state boundaries.

Anthony .... Here to serve (polishing off blue and gold "R")

Nov 14, 2011 03:38 AM #13
Rainer
140,448
Chris "The Loan Ranger" McBrearty, NMLS 274079
People's Mortgage Company - Rancho Bernardo, CA
FHA, VA, USDA, Loan Officer and Educator

I LOVE IT! Great blog! Very informative. I hope alot of VA would be buyers read this before applying anywhere else for a VA loan.

Nov 14, 2011 03:48 AM #14
Rainmaker
1,785,313
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Use the certificate, you earn it is what you tell them Chris.

Nov 14, 2011 03:54 AM #15
Rainmaker
440,502
David Krichmar
www.DaveYourMortgageGuy.com - Core Lending - Sugar Land, TX
DaveYourMortgageGuy.com

Andrew, well done post!!  great information for any Veteran to know

Nov 14, 2011 04:15 AM #16
Rainmaker
1,785,313
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Thankks Dave.

Nov 14, 2011 12:53 PM #18
Rainmaker
1,785,313
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Lots of flavors for Maine home financing banking options to consider too! Besides VA as well. The right program to fit the buyers of maine home properties and the house listing itself makes financing a little more finicky, more knowledge needed to keep up with what financing instruments, routes are out there! And how they change!

Dec 03, 2012 04:22 AM #19
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