VA Home Loans in Northern Maine - Lucky to have Matt Polsky driving the blog post wheel on this contribution to the Active Rain Maine financing channel.
Whether completing their service or amid active duty, military members can use a VA loan to finance a home in northern Maine. Living as far north as Houlton, Maine serves as a quiet alternative to the frequent moves common in military families. Settling down in northern Maine with the help of a VA loan ensures that military homebuyers save money and get peace of mind with the home of their dreams.
The extensive benefits that come with Maine VA loans often shock prospective military homebuyers. Down payments on VA loans are often optional, making the program one of the last no-money-down options on the market. Even with paying nothing down, military homebuyers can still finance 100 percent of their purchase. Maine’s VA loan limit is $417,000. With the median cost of a home in Houlton being about $78,000, a VA loan in Maine gives homebuyers a chance to get something better than a starter home.
Another immediate savings from VA loans in Maine is the lower closing and concessions cost; however, Maine VA loans come with long-term saving benefits, too. First, VA loans have lower interest rates. This reduction comes as a result of the VA’s guarantee of up to 25 percent on each loan. VA-approved lenders assume less risk, and thus lower interest rates.
Private mortgage insurance (PMI) does not figure into VA loans either.
PMI is a monthly cost with conventional loans that Maine VA loans eliminate. There is a VA funding fee, but it is a fraction of the loan amount and can be broken into monthly installments. In addition, there are noprepayment penalties with VA loans so homebuyers can pay off their home at their own pace.
Eligibility for VA loans in Maine depends on service history and type of discharge. A dishonorable discharge immediately makes a service member ineligible. Those who may be eligible include:
-Those who served on active duty for 90 days.
-Those who served 181 days during peacetime.
-Members of the National Guard and Reserves who served for at least six years.
-Spouses of those who died in the line of duty or due to a service-related injury.
Qualifying for a VA loan in Maine is easier than doing so for a conventional loan. About 80 percent of homebuyers who qualified for a VA loan did not qualify for a conventional loan.
Credit and financial history standards are more lenient with VA loans, which still boast one of the lowest default rates on the market.
The first step in getting a VA loan is completing a Certificate of Eligibility (COE) from the VA or a VA-approved lender, who can answer any questions you have about VA loans in Maine.
Matt Polsky is a mortgage commentator for VA Mortgage Center.com and VA Benefit Blog. VAMC is the nation’s leading provider of VA home loans, while VA Benefit Blog focuses on providing service members with current information on the VA benefits they have earned through service. I'm Andrew Mooers, Maine REALTOR glad to have Matt contributing on this Active Rain blogging channel. Follow our sister blog MeInMaine.