Veterans and service members buying in Massachusetts can combine a federal VA loan with state property tax exemptions and a MassHousing credit, though different agencies run each program.
VA loan rules, Clause 22 and HERO Act property tax cuts, and MassHousing's $2,500 military credit each set their own eligibility and cost limits.
Check Your Massachusetts VA Loan Eligibility
Putting the numbers side by side lets you see which benefits apply to your service, what each is worth, and how a VA loan compares with the alternatives before making an offer.
Veteran Homebuyer Benefits at a Glance
Most eligible military buyers in Massachusetts can purchase a home with 0% down through a VA loan, and many also pay no upfront funding fee and qualify for an annual property tax exemption once they move in.
| Benefit | What you get | Who qualifies |
|---|---|---|
| VA home loan | 0% down, no monthly mortgage insurance, no prepayment penalty | Service members, veterans and some surviving spouses with a Certificate of Eligibility |
| VA funding fee exemption | No one-time funding fee at closing | Veterans receiving VA disability compensation and other exempt groups |
| Clause 22 property tax exemption | Yearly cut to your tax bill, from $400 up to a full exemption | Veterans with a 10%+ service-connected disability, Purple Heart recipients, Gold Star parents, certain surviving spouses |
| MassHousing military credit | $2,500 toward closing costs | Guard and Reserve, active duty, veterans and Gold Star Families using a MassHousing loan |
VA Loan Basics
A VA loan in Massachusetts is backed by the U.S. Department of Veterans Affairs and issued by private lenders to reduce both upfront cash and monthly payments.
- No down payment: You can finance 100% of the purchase price as long as the sales price is not higher than the appraised value.
- No monthly mortgage insurance: VA loans charge no ongoing private mortgage insurance (PMI) or monthly mortgage insurance premiums.
- No prepayment penalty: You can make extra principal payments or pay off the mortgage early without a fee.
- No VA minimum credit score: You must meet VA and individual lender standards, and comparing wholesale lenders through a broker helps because each lender sets its own overlays.
- Primary residence: You must intend to live in the home you buy with the loan.
Who Qualifies for a Certificate of Eligibility (COE)
To get a VA loan, you need a Certificate of Eligibility (COE) confirming that your military service meets federal standards.
| Service | Minimum service |
|---|---|
| Active duty | 90 continuous days |
| Veterans | Depends on era: commonly 24 continuous months, the full period called up, or 90 to 181 days; less if discharged for a service-connected disability |
| National Guard | 90 days of non-training Title 10 active duty; 90 days including 30 in a row under Title 32; or 6 creditable years (still serving, honorably discharged or retired) |
| Reserves | 90 days of non-training active duty, or 6 creditable years in the Selected Reserve |
| Surviving spouses | Receiving or eligible for certain Dependency and Indemnity Compensation (DIC), or spouse of a service member missing in action or a prisoner of war |
You can request your COE on VA.gov yourself or have your lender pull it online in minutes.
Homes You Can Buy
You can use a VA purchase loan for several property types:
- A home of up to 4 units if you live in one as your primary residence, including two-family, three-family, and four-family properties (see our guide to multifamily mortgages in Massachusetts)
- A condo unit in a VA-approved project
- A manufactured home or lot
- New construction
- A home you buy and improve at the same time, including energy-efficiency upgrades such as solar installations
How Much You Can Borrow
With full entitlement, there is no VA loan limit. Full entitlement means you have never used your VA home loan benefit or your entitlement has been restored, and your COE will state that you don't have a loan limit.
Your lender sets your maximum loan based on your income, credit, debts, and assets, capped at the lower of the purchase price or the VA appraised value.
If You Have Partial Entitlement
County loan limits only come into play if you have partial (remaining) entitlement, such as when you still have an open VA loan on a home you are keeping. In that case, the VA calculates your remaining entitlement using the Federal Housing Finance Agency (FHFA) one-unit conforming loan limits in Massachusetts for your county:
- Multiply your county's 2026 one-unit loan limit by 25% (0.25).
- Subtract the amount of entitlement you have already used.
- Lenders typically lend up to 4 times your remaining entitlement with no down payment.
For example, if a county limit were $900,000 and you had already used $50,000 of entitlement, 25% of $900,000 is $225,000. Subtracting $50,000 leaves $175,000 of remaining entitlement, which supports a loan up to $700,000 ($175,000 times 4) with 0% down.
| Counties | 2026 one-unit limit | 25% used in the formula |
|---|---|---|
| Essex, Middlesex, Norfolk, Plymouth, Suffolk | $962,550 | $240,637.50 |
| Dukes, Nantucket | $1,249,125 | $312,281.25 |
| Barnstable, Berkshire, Bristol, Franklin, Hampden, Hampshire, Worcester | $832,750 | $208,187.50 |
County limits update each year (2027 limits have not yet been announced as of October 2026), so confirm current figures with your lender when you apply.
Check Your Massachusetts VA Loan Entitlement and Borrowing Power
The VA Funding Fee (and Who Pays $0)
Most VA borrowers pay a one-time funding fee at closing, calculated as a percentage of the loan amount (not the purchase price) based on your down payment and whether you have used the benefit before, though many disabled veterans are exempt.
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to under 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
On a first-time VA purchase with 0% down and a $500,000 loan, the 2.15% funding fee is $10,750. On a purchase loan, the funding fee is the only cost you can finance into the loan amount; all other closing costs must be paid at closing or covered by seller or lender credits.
If you refinance later or someone assumes your loan, cash-out refinances charge 2.15% for first use or 3.3% after first use, while a VA streamline refinance (Interest Rate Reduction Refinance Loan, or IRRRL) or loan assumption charges 0.5%.
Who Is Exempt
You pay $0 for the VA funding fee if you meet any of these criteria:
- Veterans receiving VA compensation for a service-connected disability
- Veterans entitled to receive disability compensation who receive retirement or active-duty pay instead
- Surviving spouses receiving Dependency and Indemnity Compensation (DIC)
- Service members with a proposed or memorandum rating before the loan closing date from a pre-discharge claim
- Active-duty service members who provide evidence of a Purple Heart on or before the loan closing date
If your disability claim is still pending at closing, you pay the fee upfront and can get a refund if you are later awarded disability compensation with an effective date retroactive to before your closing date. A proposed or memorandum rating issued after closing does not qualify for a refund.
Seller Credits and Closing Costs
You and the seller can negotiate who pays ordinary closing costs, and the VA does not cap seller credits toward standard closing costs. Seller concessions—such as paying your VA funding fee, paying off your debts, or prepaying hazard insurance—cannot exceed 4% of the home's reasonable value on the VA Notice of Value.
Standard Massachusetts closing costs include the VA appraisal fee, credit report, title insurance, recording fees, hazard insurance, prepaid property taxes, and closing attorney fees.
Massachusetts Property Tax Exemptions for Veterans
After you buy, veterans with a service-connected disability rating of 10% or more, Purple Heart recipients, Gold Star parents, and certain surviving spouses get a yearly flat credit off the tax bill on their domicile, from $400 under Clause 22 to a full exemption under Clauses 22D and 22F. A 100% rating alone gets $1,000 under Clause 22E.
These tax reductions are separate from the Massachusetts homestead exemption, which protects home equity from creditor claims rather than lowering your taxes.
Under the HERO Act, towns can also vote to add a yearly cost-of-living increase (Clause 22I) and an extra exemption of up to 100% (Clause 22J); there is no statewide list of adopters, so ask the assessors in towns you are considering.
To claim an exemption, you must own and live in the home on July 1 and file every year by April 1 or three months after the actual tax bill is sent, whichever is later.
See our guide to the Massachusetts disabled veteran property tax exemption for a breakdown of each clause, a savings calculator to see what it is worth in your town, and how to apply.
Check Your Massachusetts VA Loan Eligibility as a Veteran
MassHousing's $2,500 Military Closing Cost Credit
Members of the National Guard or Reserves, active-duty military, veterans, and Gold Star Families may qualify for a $2,500 closing cost credit when they use a MassHousing loan.
- Loan type: A MassHousing mortgage is a fixed-rate conventional or FHA loan, not a VA loan.
- Down payment assistance: Eligible first-time homebuyers can pair a MassHousing first mortgage with up to $30,000 in down payment assistance.
- MI Plus job-loss protection: MassHousing-insured loans include coverage that helps pay your mortgage for up to six months (up to $4,000 per month) if you lose your job.
- Purchase and renovate: MassHousing also offers a purchase-and-renovate option for homes that need repairs.
MassHousing loans and the $2,500 military credit are available only through MassHousing-approved participating lenders, and income, purchase price, or first-time buyer rules may apply.
Next Wave Mortgage is not a participating lender, but our team can compare a 0% down VA loan against a MassHousing loan with assistance so you see cash to close and monthly payment side by side.
VA Loan vs. MassHousing vs. Conventional
Choosing the right loan depends on your cash saved, your VA disability rating, and the property you want to buy.
| Feature | VA loan | MassHousing loan | Conventional loan |
|---|---|---|---|
| Minimum down payment | 0% | Set by program; up to $30,000 assistance for eligible first-time buyers | Varies by program |
| Monthly mortgage insurance | None | Required under 20% down (includes MI Plus) | Required under 20% down; can be canceled later |
| Upfront fee | 1.25% to 3.3% funding fee unless exempt | None on conventional; FHA upfront premium if FHA | None |
| Closing help | Seller concessions up to 4% of reasonable value | $2,500 military credit | Standard seller credit limits |
| 2–4 unit homes | 0% down if you live in one unit | MassHousing multi-unit rules apply | Eligible, often with a higher down payment |
| Condos | Project must be VA-approved | Standard condo review | Standard Fannie Mae or Freddie Mac review |
| Where to apply | Any VA-approved lender or mortgage broker | A MassHousing participating lender | Any broker or lender |
For a buyer with a service-connected disability rating who is exempt from the funding fee, the VA loan is hard to beat: 0% down, no upfront funding fee, and no monthly mortgage insurance.
A conventional or MassHousing loan can be the better route if the condo project is not VA-approved, or if your Guard history does not yet meet the COE threshold (such as fewer than 6 creditable years without a qualifying Title 10 or Title 32 activation).
Your Next Steps
- Check your COE and disability status: Confirm full or partial entitlement and whether you are exempt from the funding fee. If a claim is pending, check whether a proposed or memorandum rating will arrive before closing.
- Compare VA pricing across lenders: Each lender sets its own credit standards and rates. Starting with our team takes no hard credit pull, and pre-approval typically takes 1 to 3 business days once documents are in.
- Check tax clauses in your target towns: Ask the assessors if the town adopted Clauses 22I and 22J. The exemption starts only once you own and occupy the home as your domicile.
- Plan seller credits before you offer: Talk with your loan officer and agent about asking the seller to cover closing costs or, within the 4% cap, your VA funding fee.
- File for Clause 22 after closing: Closings typically take 30 to 45 days. Once you occupy the home as your domicile on July 1, file with your assessors by April 1 or within three months of the actual tax bill.
Our team at Make Massachusetts Your Home compares VA and conventional options across multiple wholesale lenders, helps you check your COE and entitlement math with no hard credit pull to start, and offers a free 15-minute call with a loan officer.
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