One of the benefits our nation’s service members enjoy for the service they provide our country is the VA loan. Colorado based veterans can count on Integrity First Financial to walk them through the VA loan process, to include helping them obtain a Certificate of Eligibility from the Department of Veterans Affairs. VA loans are for primary residences only, and cannot be used for rental properties or investment properties.
Most members of the military, veterans, reservists, and National Guard members are eligible for a VA loan in Colorado, as are surviving spouses of military members who died on active duty or as a result of a service-connected disability (provided they don’t remarry). Active duty members qualify after 6 months of service. Reservists and National Guard members can qualify after 6 years; however, if called to active duty before that, they gain eligibility after 181 days of service. All military members are eligible after 90 days of service during a period of war.
A VA loan is guaranteed by the Department of Veterans Affairs and does not require mortgage insurance like conventional home loans. This can save borrowers a considerable amount over the term of a loan. Another advantage veterans enjoy with the VA loan in Colorado is they often do not require the borrower to put down a down payment. VA loans also do not have a minimum credit score requirement either. However, most lenders require at least a 620 credit score.
The VA loan limit vary by county, but in most parts of the country it is $417,000, and up to $625,000 in high-cost areas in the continental United States. It is even higher in four counties in Hawaii.
Another advantage of the VA loan is assistance offered to veterans who are struggling financially. The VA can negotiate with the lender on behalf of the veteran and help them secure repayment plans, loan modifications, and other alternatives to foreclosure.
There is a one-time funding fee that applies to the VA loan in Colorado. The loan fee depends on the amount of the down payment. A borrower getting a VA loan for the first time, with zero down payment, would pay a fee of 2.15% of the loan amount. Borrowers that put down a 10% down payment would pay 1.25% of the loan amount. Those using the VA program a second time, without a down payment, would pay 3.3% of the total loan amount.
For more information on these or other types of home loans, please call or email Integrity First Financial at (719) 385-0777 office, (719) 360-3767 mobile, or contact the own directly at vic@integfirst.com to discuss VA loans in Colorado.