VA Home Loan Basic Training
With mountains, oceans and dynamic urban life, Massachusetts can be a state that many would want to call home, especially those who have served our country. After all, Massachusetts is home to much of the American history and traditions that veterans sacrificed to protect. But for veterans looking to buy a home, it’s not always easy, and it requires both time and money. However, there’s no feeling like walking through your own front door, and no one deserves this more than our uniformed men and women. That’s why there are VA (U.S. Department of Veterans Affairs) loans – they are there to make this dream come true. The VA loan program offers huge benefits to their borrowers, making the home financing process a blessing rather than a stressor.
VA loans are much easier to qualify for than are conventional loans, taking a load off of the backs of veterans from the start. Veterans Affairs backs the loans, so VA approved lenders are willing to lend more, much more often. Typically, you can have a debt-to-income ratio of up to 41% and still qualify, so don’t let your finances discourage you too soon. (Current DTI ratios for other types of conforming loans can be found here.)
The biggest qualifying measure is how long you served:
- 181 days during peacetime or 90 days during wartime for Army, Navy, Air Force, Marine and Coast Guard veterans
- 6 years for National Guard and Reserves veterans
- If you are the spouse of someone who died in service, or if you had to return home due to something health-related, you could still qualify as well.
VA loans have a limit of $417,000, but one of the biggest benefits they offer is that you can borrow this full amount and still enjoy zero down payments. Again, this program aims to make the home buying process as easy as possible for veterans. And aside from no down payments, they have provisions to save you money as well.
- Lower closing costs than conventional loans
- No required Private Mortgage Insurance (PMI), saving you monthly costs that can be up to a few hundred dollars
- Lower interest rates than conventional loans, usually by about .5-1%
James Kelley is a law school student at the University of Missouri who works to educate the public on government financing options for home purchases. He is a co-founder of Military Basebook, a facebook application that helps connect military members based on where and when they served.
