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.
Fishing around for the best financing to buy a home in Maine? Are you or were you a veteran serving in the armed services? If you have earned an honorable discharge or are not serving consider a VA bank loan! 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.
Eligibility 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).
Thank you for stopping into our Maine real estate blog post on VA financing. The Veterans Administration has the last word, final say on who is actually exempt. Maine, wake up and start dreaming in blue and green.