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Maryland VA Mortgage

Maryland VA Mortgage - Learning Center.

VA purchase mortgages or refinance mortgages usually allow for 100% of the home’s value to be financed. In addition, when refinancing a VA home loan you may be able to 'cash-out' up to 100% of the home's value . VA home loans are guaranteed by the Veterans Administration. Although the VA does not set a maximum sales price for a home loan the regular loan limits are set according to the Federal Housing Finance Agency's limits. A home must meet VA appraisal guidelines and the Veteran must also credit and income qualify.

Understanding a Maryland VA Home Loan.

When you want to utilize your VA eligibility to purchase a home, there a certain steps you should follow.

Understanding your income when using a VA home loan:
Borrowers should have a full two years history. Higher education may be used in lieu of a full 2- year history. Job changes are “ok” if you have stayed in a similar field and as long as there have been no job gaps greater than 6 months in the last 2 years. 30 days of pay stubs will be needed when applying for the loan. Self-employed Borrowers or Borrower who need to use Overtime, Bonus or Commission income generally will have to show 2 years of those earning in qualifying

Understanding your reserves when using a VA home loan:
Additional reserves, funds over and above money needed at closing, may assist in the approval process. Funds for closing or reserves should not be cash on hand. All money should be ‘seasoned’, meaning already in your existing checking, savings, money market or retirement account for 60 days.

Understanding your credit when using a VA home loan:
Generally, a credit history of 3 open and active credit lines in good standing opened greater than 12 months ago is recommended. Your credit score maybe used in determining your eligibility. A minimum credit score of 580 is recommended*.

Understanding the property requirement when using a VA home loan:
The property must be appraised by a VA-approved appraiser and meet VA requirements. The loan limits vary dependent on the property locations.

Understanding a Maryland VA streamline refinance.

What is a VA Interest Rate Reduction Refinance Loan (IRRRL)? If you currently have a home with a VA loan, you may be able to utilize a VA IRRRL to reduce the interest rate or change a loan's term. The process eliminates many of the regular requirements of a full VA refinance. You may not have to present income, assets or credit, except mortgage payment history, when using a VA streamline loan.

Common documents needed when utilizing a Maryland VA Mortgage loan.

VA Certificate of Eligibility - Need yours? Visit the VA COE online.
Copies of your most recent 2 yrs W2’s for all qualifying Borrowers.
Copies of most recent 30 days of paystubs. 
Most recent 2 months of Bank statements (or most recent quarterly statement if applicable).

For refinances - Copy of your current homeowners insurance policy with the agents name and contact number.

Here are some simple steps to follow for first time Maryland home buyers:

  1. Gather the necessary documents (listed above  ‘Common Documents’)
  2. Search out the Maryland VA loan limits in your area.
  3. 3. Now you are ready to get your VA buyer advice direct from a loan officer. Request a Maryland VA home loan purchase rate quote or a Maryland VA refinance quote.

Maryland 2025 VA Home loan limit broken down by Maryland Counties and Cities.

List of Services

Veterans Affairs loans require a funding fee, which is based on various loan characteristics. On an Interest Rate Reduction Refinance Loan (IRRRL) the Veterans Affairs does not require an appraisal, but Freedmont Mortgage Group may require a drive-by-appraisal. Income documentation is not required, but source of income must be verified. Purchases only, must have Automatic Underwriting System (AUS) approval. No cash-out under 600. Sales price cannot exceed appraised value. In a purchase transaction, reasonable closing costs may be paid by the seller, and the program is available with no points depending on credit profile, collateral, and current mortgage history. VA 580 FICO - *Purchases only, must have Automatic Underwriting System (AUS) approval. No cash-out under 600.