Buying a Home in Massachusetts as a Veteran or Service Member

If you served in the military, are serving now, or are the surviving spouse of a service member, you may have earned one of the strongest home-buying benefits available: the VA home loan. Massachusetts also offers property tax help for many veterans. This guide explains how the VA loan works, what it costs in 2026 and which Massachusetts benefits relate to owning a home.

VA home loan basics

A VA purchase loan is made by a private lender, like a bank or mortgage company, and backed by the U.S. Department of Veterans Affairs. According to the VA, key benefits include:

• No down payment in most cases, as long as the price is not more than the appraised value
• No private mortgage insurance (PMI)
• Competitive interest rates and limits on some closing costs
• No penalty for paying the loan off early

You can use a VA loan to buy a home of up to four units, a condo in a VA-approved project, or to build or improve a home. You must plan to live in the home. If you are interested in a two- or three-family, see our guide to buying a 2–4 family to live in.

Who is eligible?

You need a Certificate of Eligibility (COE). You can request it online through VA, or your lender can usually get it for you in minutes. Service requirements depend on when you served. For example, according to VA:

• Active-duty service members: generally 90 continuous days of service
• Veterans who served from August 2, 1990, to today: generally 24 continuous months, or the full period you were called to active duty (at least 90 days)
• National Guard and Reserve: for example, 6 creditable years, or 90 days of qualifying active-duty service

Some surviving spouses also qualify. You may still be eligible with less service if you were discharged for a service-connected disability or certain other reasons. You also need to meet the lender’s credit and income standards.

The VA funding fee for 2026

Most VA borrowers pay a one-time funding fee. You can pay it at closing or add it to your loan. The current VA rates for purchase and construction loans (effective April 7, 2023, and still in effect in 2026) are:

For example, on a $500,000 loan with no down payment, a first-time user’s funding fee would be 2.15%, or $10,750.

Who does not pay the funding fee?

According to VA, you are exempt if you:

• Receive VA compensation for a service-connected disability, or are eligible for it but receive retirement or active-duty pay instead
• Receive Dependency and Indemnity Compensation (DIC) as a surviving spouse
• Are a service member with a proposed or memorandum rating, received before closing, showing you are eligible for compensation
• Are an active-duty service member who shows proof of a Purple Heart on or before closing

Entitlement and loan limits

“Entitlement” is the amount VA promises to repay your lender if you default. It is not a cap on what you can borrow.

• Full entitlement: If you have never used your benefit, or you paid off a prior VA loan and sold the home, you have no VA loan limit. You can borrow as much as a lender approves, with no down payment, as long as the price does not exceed the appraised value.
• Remaining entitlement: If you still have an active VA loan or a past foreclosure, your no-money-down amount is limited by the county conforming loan limit. You may need a down payment for a larger loan. VA uses the one-unit county limit set by FHFA, even for multi-unit homes. For 2026, the national baseline is $832,750, and Greater Boston counties are higher.

Your lender can calculate your exact buying power from your COE.

The VA appraisal and condo approval

Every VA loan requires a VA appraisal. The appraiser sets the value and checks that the home meets VA’s minimum property standards for safety, soundness and sanitation. Older homes in Greater Boston sometimes have items an appraiser may flag, like peeling paint, missing railings or roof problems. Repairs may be needed before closing.

If the appraisal comes in below the price, you can ask the seller to lower the price, pay the difference in cash, or use the options in your contract. Talk with your attorney and agent about how your offer and Purchase and Sale Agreement handle this.

Condos: VA only lends on condos in VA-approved projects. Many Greater Boston condo buildings are not yet approved. Ask your agent to check approval status before you fall in love with a unit. See our condo buying guide.

Massachusetts benefits for veteran homeowners

Property tax exemptions (Chapter 59, Section 5)

Massachusetts law offers local property tax exemptions to many veterans, their spouses and surviving spouses. These include, according to the Department of Revenue’s taxpayer guide:

• Clause 22: $400 for veterans with a service-connected disability of 10% or more, Purple Heart recipients and Gold Star parents, among others
• Clause 22E: $1,000 for veterans with a 100% service-connected disability
• Clauses 22A, 22B, 22C: $750 to $1,500 for specific severe disabilities or decorations
• Clauses 22D and 22F: full exemption for certain surviving spouses and certain severely disabled veterans

There are residency rules. For example, Clause 22 generally requires that you lived in Massachusetts for six months before entering service or for at least two years before the tax year (some towns reduce this to one year). You must apply with your local assessors every year, usually by April 1 or three months after tax bills are mailed, whichever is later.

HERO Act updates: The HERO Act, passed in August 2024, lets each city or town choose to double these exemption amounts (Clause 22J) or adjust them each year for inflation (Clause 22I). These are local options, so benefits now vary by town. Ask your local assessor’s office what your town has adopted.

MassHousing

MassHousing has offered veteran-specific options in the past. In 2018 it announced a $2,500 closing cost credit for veterans using its Operation Welcome Home program. Programs change, so ask a MassHousing-approved lender what is available today. You may also qualify for MassHousing’s general first-time buyer help. See our guide to first-time buyer programs.

Step by step

1. Get your Certificate of Eligibility.
2. Talk with a lender experienced with VA loans and get pre-approved.
3. Choose an agent who knows how to present VA offers.
4. Check condo approval or property condition early.
5. After closing, apply for any property tax exemption with your town.

How Luis can help

Thank you for your service. Our team can help you use your VA benefit with confidence, from finding homes that fit VA standards to connecting you with experienced VA lenders, in English or Spanish. Book a free 15-minute call to get started.