July 28, 2011—
The
Pentagon Federal Credit Union Foundation (PenFed Foundation), a
nationally recognized nonprofit organization working to meet the unmet
needs of military personnel and their families, is offering financial
help to eligible first-time home buyers through its Dream Makers
program.
Active duty personnel, veterans and retired members of the
military, as well as employees of the U.S. Department of Defense and the
Department of Homeland Security, qualify for a grant up to $5,000 to
use on down payments and closing costs when buying their first home.
“Members
of the military often put off buying a home earlier in their careers
because they’re moving around the country a lot,” says Kate Kohler,
former Army captain and chief operating officer for the PenFed
Foundation. “We want to make sure they have resources to add immediate
equity into their home when they decide to buy and the Dream Makers
program helps make that possible.”
In today’s housing market, the
PenFed Foundation has seen a slowdown in the number of veterans applying
for the program, so it is redoubling its efforts to help both active
duty members and veterans learn about the Dream Makers program.
“Community
leaders, REALTORS® and other people working in real estate should know
that they can help their clients who are veterans or active duty
personnel get assistance in buying their first home,” says Kohler. “And
this is a program they could promote that will benefit our nation’s
defenders.”
To make a donation or learn more about the foundation, visit www.PentagonFoundation.org.
Whether you are a first-time home buyer, or are experienced with the VA Home Purchase process, buying a home is one of the most important decisions you will ever make.
Eligibility
for the VA Home Loan Program*
Who's Eligible for a VA-Backed Loan?
- Veterans
- Active duty personnel
- Reservists/National Guard members
- Some surviving spouses
Here are the
basic eligibility requirements for a VA Loan:
- 90 days or more active duty service during wartime
- 181 days or more of active duty during peacetime
- You were not dishonorably discharged
- You are active duty and meet the above requirements
- You are the surviving spouse of a veteran who died during service or because of service-related injuries and you have not remarried
How Do I Prove
to the Lender that I’m Eligible?
You’ll need a Certificate of Eligibility (COE) before you can get a VA-backed loan.
Also, MASS HOUSING has a great program for MA Veterans!
Home for the Brave
MassHousing's
Home for the Brave program offers affordable, no-downpayment mortgage
financing for veterans of the U.S. Armed Services. In conjunction,
grants from the Veterans Administration are available to help disabled
veterans make accessibility upgrades to properties they are interested
in purchasing.
How to Apply
Home for the Brave loans are made through approved community banks and are made possible by MassHousing. To apply, contact us.
Who is Eligible?
Home for the Brave loans are available to
▪ Veterans of the U.S. Armed Services
▪ Active-duty military*
▪ Spouses of soldiers, sailors or marines killed while on active duty
*Because
the employment on which their qualification is based is their military
service, active-duty military do not qualify for mortgage payment
protection if called to serve overseas since neither employment nor
salary would change.
Program Features
▪ No down payment required
▪ Loans feature MI Plus which covers principal and interest
payments for up to six months in case of unemployment or deployment
▪ Closing cost assistance available for first 200 veterans who receive loans
Down payment
No down payment is required for single-family homes and condominiums.
Income Limits
Income and loan limits apply. See below or contact us for details.
Other Restrictions
To qualify for a Home for the Brave mortgage, you must
▪ Purchase a primary residence. You do not have to be a first-time
home buyer, but you may not own more than one home upon closing the loan
▪ Have good credit
▪ Have a total housing debt of less than 38% and a total monthly debt of less than 45%
▪ If you are buying a 2-, 3- or 4-family property, have two-months' reserves
▪ If you are seeking 100% financing, complete a home buying counseling course
What is MI Plus?
Traditionally,
Mortgage Insurance only covers the lender in case a borrower is unable
to repay a loan. MI Plus is an added borrower protection if you lose
your job:
▪ MI Plus covers principal and interest payments up to $2,000/month
▪ MI Plus benefits last up to 6 months, giving you time to get back on your feet
▪ MI Plus benefits may be used for any 6 months during the first 10 years of the loan
▪ MI Plus benefits come at no added cost on all loans insured by MassHousing
Veteran's Informational Video on VA Loans: 1:42seconds
2011 Veterans Affairs County Loan Limits for High-Cost Counties
The Department of Veterans Affairs Loan Guaranty program does not
impose a maximum amount that an eligible veteran may borrow using a VA-
guaranteed loan. However, the following county “limits” must be used to
calculate VA’s maximum guaranty amount for a particular county. These
limits
apply to all loans closed January 1, 2011 through September 30, 2011.
Fiscal Year 2012 county loan limits will be made available as soon as possible.
The maximum guaranty amount (available
for loans over $144,000) is 25
percent of the 2011 VA limit shown below. Therefore, a veteran with
full
entitlement available may borrow up to the 2011 VA limit shown below and VA
will guarantee 25 percent of the loan amount. If a veteran has previously
used
entitlement that has not been restored, the maximum guaranty amount available
to that veteran must be reduced accordingly. Lenders should check their
own
investor requirements regarding guaranty amounts and down payments.
Questions about VA loans in a particular county may be directed to the VA
Regional Loan Center listed for that county
STATE / COUNTY 2011 VA LIMIT / Regional Loan Center
- CT FAIRFIELD $625,000 MANCHESTER
- MA BARNSTABLE $418,750 MANCHESTER
- MA DUKES $782,500 MANCHESTER
- MA ESSEX $493,750 MANCHESTER
- MA MIDDLESEX $493,750 MANCHESTER
- MA NANTUCKET $1,094,625 MANCHESTER
- MA NORFOLK $493,750 MANCHESTER
- MA PLYMOUTH $493,750 MANCHESTER
- MA SUFFOLK $493,750 MANCHESTER
- NH ROCKINGHAM $493,750 MANCHESTER
- NH STRAFFORD $493,750 MANCHESTER
NOTE: For all counties other than those listed above, the 2011 limit is $417,000.
