PMAC Lending absolutely loves to help Veterans receive VA purchase loans in the Portland, South Portland and Falmouth areas of Cumberland County in Maine! VA purchase loans are great options for Veterans to use when purchasing a house, condo, manufactured home or co-op.
Awarded via the Veterans Administration, VA purchase loans are a segment of a loan program backed by the U.S. Government and exclusive only to qualified Veterans. The main factor in determining eligibility in this program is a Veteran’s duty status relative to their time served in the military.
Reserves, members of the National Guard, active-duty military members and surviving spouses, widows and widowers are eligible for VA purchase loans. Commissioned Officers of the Public Health Service and National Oceanic and Atmospheric Administration are deemed eligible active-duty service members, as are properly discharged Veterans.
Veterans who were dishonorably discharged can still be eligible for a VA purchase loan, however, they will be subject to a review by the Veterans Administration.
As with other VA loans, purchase loans are attractive to Veterans because they do not have tough credit requirements and come with favorable interest rates. The property a VA purchase loan is used for must be approved by the Veterans Administration, as well as be the Veteran’s main residence. The Veterans Administration will conduct an appraisal of the property to determine its value in the housing market.
Via a VA purchase loan, up to 100% of a property’s value can be guaranteed. The Veterans Administration doesn’t process the loan, rather using private lenders to do so. Since a portion of the loan is guaranteed by the Veterans Administration, private lenders are protected in the event a borrower cannot repay their VA purchase loan, as the Veterans Administration will cover the lender’s losses.
The Veterans Administration guarantees a percentage of the purchase loan in an effort to help Veterans receive a mortgage that doesn’t require a big down payment and have a high interest rate.
The result of the purchase loan guaranty is private lenders offer better terms and conditions to borrowers. Among the most favorable conditions routinely offered are a 0% down payment and no requirement private mortgage premium. Closing costs are also financed for borrowers, plus there is no penalty for repaying their purchase loan off earlier than the initially anticipated date.
There is technically no cap on the how much a borrower can receive from a VA purchase loan, yet loan limits are still imposed to protect the Veterans Administration’s total assumed liability. Therefore, the amount of financing awarded to a borrower using a purchase loan to secure a property is indeed affected.
Fundamentally, loan limits are the total a Veteran with a full entitlement may receive without needing to make a down payment. Loan limits alter by the county because the value of a home is largely based on its location.
PMAC Lending is a leading company in the Cumberland County area of Maine. Below are its loan limits:
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Sufficient income is needed by a borrower to secure a VA purchase loan. To officially apply, a DD Form 214 and a validated Certificate of Eligibility is required. Often times, a private lender can aid a borrower in obtaining a verified COE.
Call PMAC Lending today at (207) 321-5307 or click here to begin obtaining a wonderful VA purchase loan!