Home to the plethora of major military installations, Maryland is a popular choice for veterans to settle in. The peaceful and tranquil coast offers the perfect location to purchase your new home. If you are or have been in the armed services, you can take advantage of the VA home loans for up to 100% financing of your home. For a military veteran, qualifying for a VA loan benefit is simple, easy, and extremely convenient. But before we move forward to the VA loan requirements, let’s discuss what a VA loan is.
What is a VA loan?
A VA loan is a mortgage loan created especially for veterans by the United States Department of Veteran Affairs. The loan allows all different kinds of veterans, service members, and the eligible surviving spouses to purchase a home. You can get a VA loan to buy, build, repair, or even retain a house. It offers 100% financing on the total value of your home irrespective of you being a first-time homebuyer or a seasoned homeowner. VA loan requirements in Maryland are quite lenient and accommodating. They offer a plethora of benefits including low-interest mortgage rate, lack of down payment (optional), lack of insurance premium, low credit limit, and more.
Know more about VA loan benefits and your eligibility now!
What are the benefits of getting a VA loan?
VA loans offer several benefits for military veterans to enjoy while purchasing their dream home.
- One can get away without a down payment if the lender doesn’t require so. If the purchase price of your house is more than the established property value, you might need to put down a down payment but otherwise, you are good to go.
- The closing costs are extremely limited. You can even get your seller to pay for it and save some additional expenses.
- You do not need to pay any private mortgage insurance premium that most home loans mandate. It lowers your monthly installment as well as saves a lot of money in the long run.
- VA offers expert assistance to help borrowers avoid defaults and maintain regular payments.
- You might not be charged with any prepayment penalties; it depends from lender to lender.
- Some counties in Maryland even offer some additional benefits including property tax reductions to make VA loans more attractive and advantageous.
- The VA loans allow lenders to determine their own criteria which results in enhanced leniency and forbearance. This also allows veterans with low credit scores to find a lender who is open to negotiation.
- As VA loans are specifically created for struggling veterans. They allow veterans to qualify for a low-interest VA mortgage which can be quite beneficial in the long run.
- VA loans are not limited to first-time home buyers and allow you to reutilize the benefits according to your convenience. You can even assign your home loan to another qualifying person if you want to.
So, what are you waiting for? Get pre-approved to apply for own VA loan today!
What are the VA loan requirements in Maryland?
Now that we have discussed the several benefits of getting a VA loan in Maryland, let’s confer on the loan requirements that you need to qualify in order to get one.
Here are the necessary VA loan eligibility requirements to get approved for your VA home loan in Maryland.
- Active time served– VA loan requirements need you to serve at least 90 days or more of active duty during wartime to qualify for the loan. If you have not served any active time in warfare, do not worry, you can still get approved. You will need to have served 181 days or more of active duty during peacetime to qualify. If your time served in active service is any less, you will not be eligible for the benefits of the VA home loans.
- Honorable discharge– You need to have been discharged under circumstances that are honorable and at par with the ethics that our veterans go by. Dishonorably discharged veterans will not qualify for VA home loans in Maryland.
- Spousal requirements– If you are the surviving spouse of a deceased veteran, you can get qualified. The veteran has to have died during his term of service or because of some service-related injury for his/her spouse to qualify. Moreover, the spouse needs to stay unmarried at the time of attaining the loan. A remarried relative will not be eligible for VA loans.
- Required credit score– VA loan requirements are quite lenient and allow lenders to set up their own criteria. This is enormously convenient for if you do not meet the credit standards of one lender, you can always go to another who offers the loan at a lower credit score. The general credit score that most lenders can do is 550 so if you are anywhere near, you will easily qualify.
- Payment history– Your payment history plays a crucial role in getting your qualified or disqualified for the loan. The VA approval process takes a look at your credit history of the past 12 months to determine whether you are eligible or not. You need to have a clean payment history, without any late payments or defaults to get approval. If there are any discrepancies, you will be deemed unreliable and incapable to make repayments. Although, VA loans do allow veterans with past bankruptcy (1 to 2 year waiting period depending on type) and foreclosure if their financial statement is clean for the last 2 years.
Think you meet all the basic requirements mentioned above? Get approved and start your application process today!
Specifically for veterans, VA home loans are an excellent option for members of the armed forces looking to purchase their own house. With such a large and extensive variety of benefits, these government-backed loans are your best bet for getting your dream house. The lenient loan requirements and the convenient application process makes it much extremely easy to get a home loan in Maryland.
Are you ready to take the first step? Connect with a VA home loan specialist and determine your eligibility now!