Veterans have use of VA loan programs offered by individual lenders but guaranteed by the federal government. The guarantee buffers lenders against loss up to a specific value if a borrower defaults on the loan. With this guarantee, lenders are able to extend veterans features not easily found in other alternatives. Below is an overview of the features of VA loan programs in Boston.
Features Of VA Loan Programs In Boston
The best advantages of VA loan programs are the options for no money down and no mortgage insurance. Veterans can finance the entire purchase price, assuming the appraisal is sufficient and the particular lender does not have a special mandate for down payment. VA mortgages also allow veterans to purchase a home by reducing the additional expense of mortgage insurance, which is typically included in mortgages with less than twenty percent down. Other notable advantages are...
- Similar closing costs to other loans.
- VA mortgages are transferable.
- No pre-payment penalty.
- Ability to roll in or lower the VA funding fee for the home loan.
Obtaining VA Loan Programs
To obtain a VA mortgage, veterans must meet a few requirements. The first set pertains to their actual service - war served, type of service, and amount of time served. The second set includes the traditional credit score and financial factors reviewed by lenders. Veterans may call any mortgage company offering VA mortgages to confirm eligibility and request a pre-approval.
With a pre-approval in hand, buyers may then begin visiting homes within their price range. Once a listing is found, an offer can be made contingent upon approval for VA financing. With a contract to purchase, buyers will then apply for a 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 may only have one active VA loan at any given time.
This article is simply a brief overview of the features of VA loan programs in Boston. To be directed to a local lender providing VA loan programs, contact Ingrid Johnson at The Russell Realty Group at 508-326-2556 or firstname.lastname@example.org.
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