Can You Use a VA Loan Benefit to Buy a Home in Baltimore County?

If you’re a veteran of the U.S. Armed Forces – including the Army, Air Force, Marine Corps, Navy or U.S. Coast Guard – you may qualify to buy a home in Baltimore County with a VA loan. This guide gives you the scoop on using your VA loan benefit to buy your dream home, whether you’ve retired from the service or completed one contract and decided to hang up your uniform for good.

Can You Use a VA Loan Benefit to Buy a Home in Baltimore County?

The U.S. Department of Veterans Affairs offers former service members and some qualifying dependents access to VA-backed loans. These loans are – at least in part, depending on the total loan amount – guaranteed by the U.S. government. That means lenders are willing to offer former service members and their qualifying dependents more favorable terms and interest rates.

Who Qualifies for a VA Loan to Buy a Home in Baltimore County?

Who Qualifies for a VA Loan to Buy a Home in Baltimore County?

An honorably discharged veteran, surviving spouse or other surviving dependent may qualify for a VA loan by meeting the requirements listed here.
Related: What does it mean when a house is “under contract”?

What Are the Benefits of Using a VA Loan to Buy a House in Baltimore County?

There are several benefits to using a VA loan if you qualify. For most people, the most desirable benefits are:

  • No down payment. You don’t have to use a down payment to buy a home with a VA loan. The entire home purchase (including closing costs and the VA funding fee) can be rolled into the mortgage. Naturally, your monthly payments will be higher if you don’t put down any money up-front, but for most people, the fact that these loans don’t require a down payment is incredibly important; it puts home ownership within easy reach.
  • More favorable interest rates and terms. Because the VA guarantees these loans (up to a certain amount, which can change periodically), lenders are willing to offer qualifying veterans and dependents more favorable terms and interest rates than they’d ordinarily qualify for. Even if you have less-than-perfect credit, you’re more likely to get a better deal than you would using a conventional loan.
  • No private mortgage insurance requirement. The VA prohibits lenders from forcing you to buy private mortgage insurance, or PMI, if you use a VA loan. Usually, PMI is something buyers have to pay for if they put down less than 20 percent of a home’s purchase price – but with a VA loan, you don’t have to (and shouldn’t) buy it. PMI only protects the lender if you default on your payments; it has no benefit to you.
  • No prepayment penalty. Your lender can’t charge you a prepayment penalty if you pay off your VA loan early, which means you could theoretically pay it off as soon as the ink is dried on your purchase agreement without paying prepayment fees.
  • Limited closing costs. The VA limits the amount lenders are allowed to charge you for closing costs. And even better, sellers are allowed to pay them for you – which means even less money out of your pocket to purchase a home.

Related: Why should you get mortgage preapproval before you start looking for a home?

Are You Buying or Selling a Home in Baltimore County or Howard County?

If you’re ready to buy or sell a home in Baltimore County or Howard County, we can help. Check out these listings:

If you’re thinking about selling your home, we can help you sell it quickly – and at the best possible price. You can:

If you have specific questions, fill out the form below or call us at 443-955-1227 – we’re here to help you with any aspect of your real estate transaction.[wpforms id=”220617″]

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