No other home lending program caters more specifically to the needs of veterans and active duty service members than the VA Home Loan program. Established in 1944, the VA Home Loan program was created to meet the unique financial needs of military members by offering one-of-a-kind benefits and lenient eligibility requirement. Specific benefits provided by the VA Home Loan include:
• Zero down payment
• Competitive interest rates
• Flexible mortgage terms

For real estate agents, VA home loans can be beneficial because they have higher loan limits than other lending programs in the same category. The average home price in Maine can range from $250,000 to $400,000+ depending on the location, and for military buyers financing such a purchase may not be possible with a conventional home loan. With a VA Home Loan, eligible military borrowers are typically able to borrow up to $417,000 for their home purchase; however, that amount can be as high as $1 million in high cost counties around the country. For realtors this higher loan limit means a larger commission.

What is the Typical VA Loan Process?
The VA home loan process is a relatively quick and easy process, which benefits both the buyer and the real estate agent. In as little as 30 days, a military buyer could be in their new home.

If a real estate agent meets with a military member who is interested in purchasing a home, it is always wise to ask the potential buyer if they have already spoken with a VA loan specialist, such as VA Mortgage Center. If they have, the realtor should be able to determine the buyer’s pre-qualified amount and will be able to commence home shopping at once. However, if the military member has not spoken with a VA loan specialist, suggest to them the benefits of doing so.

After the interested buyer has spoken with a VA loan specialist to determine their pre-qualified amount, and submitted their Certificate of Eligibility to the VA-approved lender, they will be able to purchase a home in four quick steps:
• Find a home with the help of a registered Realtor
• Submit the VA Home Loan application
• Wait for processing and approval
• Close the loan

Who is Eligible for a VA Home Loan?
Nearly all veterans and active duty service members who have served in a branch of the U.S. military are eligible to receive a VA Home Loan. Spouses of military members who were killed in action may also be eligible to receive a VA home loan. To initially qualify for a VA loan in Maine, interested military members must submit their Certificate of Eligibility to provide proof that they have:
• Served for at least 3 months on active duty during war time or 181 days on active duty during peacetime
• Or have served for at least 6 years in the Reserves or National Guard

The VA home loan program has no income or credit requirements, but most VA-approved lenders do. In order to secure financing, most VA-approved lenders will desire a mid-range credit score of at least 620. Regardless of their credit history, all interested veterans and active duty service members are still encouraged to apply for a VA home loan.

Matt Polsky is a blogger 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 news and information on the VA benefits they have earned through serving our country.

One Response to “Using a VA Loan to Purchase Your Maine Home”

1. 1
   Allen Deaver Said: @8:59 am 
   

   Thank you for the informative blog about VA Loans. As a veteran myself and a real estate professional in the Austin Texas area I work with many fellow veterans. The VA is an exellent program for Honorably Discharged veterans to purchase a home.

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