If you’re a Veteran, active-duty service member, or eligible surviving spouse in Maryland, the VA loan program is one of the best benefits available when buying a home. Here are some key tips tailored for Maryland homebuyers to help you get the most out of your VA loan:
1. Understand the Zero Down Payment Advantage
One of the biggest benefits of a VA loan is that you don’t need a down payment. This can save you thousands of dollars upfront compared to conventional or FHA loans, especially helpful in Maryland, where home prices vary greatly between areas like Baltimore City, the suburbs, and the Eastern Shore.
2. Know About the Funding Fee
Most borrowers will pay a one-time VA funding fee, which helps keep the program running. However, some Veterans with service-related disabilities are exempt. You can finance the fee into your loan if needed.
3. Check Your Eligibility Early
Before shopping for a home in Maryland, request your Certificate of Eligibility (COE) from the VA or your lender. This document confirms your qualification for the VA loan benefit.
4. Keep Your Credit in Good Shape
Even though VA loans are more flexible with credit requirements, maintaining a healthy credit score will help you secure better interest rates and make your approval process smoother.
5. Don’t Forget About Closing Costs
While you don’t need a down payment, you’ll still need to plan for closing costs such as appraisal fees, title insurance, and recording fees. In Maryland, some closing costs may vary by county, so check ahead of time. The good news: VA rules limit what closing costs you’re allowed to pay, keeping your expenses manageable.
6. Take Advantage of No Private Mortgage Insurance (PMI)
Unlike conventional and FHA loans, VA loans don’t require PMI, saving you hundreds of dollars per month over the life of the loan.
7. Shop Around for a VA-Approved Lender
Not all lenders are equally experienced with VA loans. Look for one that specializes in them and is familiar with Maryland’s real estate market for a smoother process and the best possible terms.
8. Know That VA Loans Can Be Used More Than Once
Many Veterans think they can only use their VA loan benefit one time. In fact, you can use it multiple times, as long as you meet eligibility requirements.
9. Remember the Property Requirements
The VA requires homes financed with VA loans to be safe, sound, and sanitary. Work with an experienced Maryland real estate agent who understands VA appraisal standards to avoid surprises.
10. Consider VA Loan Assumability
VA loans are assumable, meaning another qualified buyer can take over your loan’s terms if you sell your home. This can be a big selling point in Maryland, especially if interest rates rise.
Bottom line: For Maryland Veterans and service members, the VA loan is a powerful tool to maximize buying power and save money. By understanding its benefits and requirements, you’ll be in a strong position to secure your dream home in the Free State.