Maine VA Mortgage Requirements: Everything You Need To Know

Today’s homebuyer has a lot of questions about mortgage regulations. From what’s changing to new rules that were implemented in recent years, it’s understandable why people are intrigued by the topic. Mortgage rules are constantly changing, and with that comes the need to stay on top of the latest regulations. 


This article will explain everything you need to know about the new mortgage regulations and will answer common questions about the changes. If you’re ready to learn more about the new mortgage requirements and learn how these new rules will affect you and your homebuying plans, read on.


What Mortgage Regulations Are In Place


Recently, the Consumer Financial Protection Bureau (CFPB) implemented new mortgage regulations. These regulations are designed to protect consumers from predatory lending practices, but they also have some significant economic implications for lenders. A summary of the changes:


  • The maximum monthly payment for a 30-year fixed rate mortgage can’t exceed 31% of a borrower’s monthly gross income. 
  • Lenders must calculate the total costs of a mortgage, including any third party fees, before selling it to a consumer and disclose those costs in writing. -Borrowers who take out mortgages that are higher than 85% of the home’s value will be required to purchase private mortgage insurance (PMI). 
  • Borrowers can no longer be charged more than 3% as an origination fee on loans under $3 million. If the loan is over $3 million, then the fee can be up to 6% or 0.5% of the amount over $3 million.


How Can Mortgage Requirements Change


Maine VA Mortgage requirements can change for a number of reasons, but one factor in particular is the new tax law. Congress passed a bill that impacts mortgage deductions. The new law caps the deduction to $750,000. This affects those who are looking to purchase a home and have an interest-only loan. Many people rely on the tax benefits of their mortgage and use it as part of their budgeting plan each year. 


But now with these changes, you could be putting yourself in financial risk if you don’t keep up with the changing regulations.  The good news is that there are still mortgage programs available to help you finance your home purchase. You may be able to find one that works for you by talking with your lender or considering different financing options available to you.  It also helps knowing that many lenders offer high-LTV loans for borrowers who can make at least 20 percent down payment or spend down their assets before going through this process.


How Does The VA Mortgage Program Work


Veterans Affairs offers a special mortgage loan program for those who have served in the military. The VA allows qualified veterans to take advantage of a no-down-payment loan that doesn’t require monthly mortgage insurance. These loans are beneficial because they require no down payment, which means less upfront money is needed. This isn’t just an option for active duty military members, but also for veterans and service members in the National Guard or Reserves. If you think you qualify, be sure to visit here.