Military Buyers

VA Home Loans – Huge Benefit for Vets & Important Role in Colorado Springs, CO Housing Market.

VA (Veterans Administration) guaranteed home loans are an amazing cost savings benefit to thousands of military families in the Colorado Springs area. The VA program is a perfect fir for active duty, Reserve, National Guard, and retired military. Two very important benefits of this mortgage program are No Down Payment Required and no Private Monthly Mortgage Insurance required.

Many military families are not aware they are eligible for this benefit. The Department of Veterans Affairs estimates there are over 30 million veterans and service personnel who are eligible for VA financing.

WHO IS ELIGIBLE FOR VA HOME LOAN IN COLOROADO SPRINGS?

Eligibility for the VA Home Loan is primarily available to persons who have had more than 180 days of active service. Eligibility primarily deponds on the amount of time you served. For active duty service members 181 days of continuous service is required. For Reserves & National Guard 6 years of service is required. However, if you were activated, you will fall under the guidelines as active duty members.

Please note there is a VA funding fee. Funding fees range from 1 1/4% to 3% depending on veteran’s service and if this a first, second, or their VA loan.

PRIMARY BENEFITS of HOME PURCHASE WITH VA HOME LOAN:

• With your VA benefit it makes it easier to get a home loan of up to $417,000.00. You can actually use this benefit to purchase your home with $0 down. Additionally you can save hundreds of dollars every month, by no requirement for PMI (Private Mortgage Insurance.)
• 100% Financing
• Interest rates are similar to FHA & Conventional home loans.
• Seller may contribute to VA buyer’s closing costs
• Perfect credit is not required
• VA loans are assumable for home buyer’s who qualify.
• VA fixed rates are fixed. Most buyer’s select 30 year fixed loans.
• If interest rates go down, you can always do a “streamline refinance.” A streamline refinance does not require income or credit verification.

STEPS IN THE VA LOAN PROCESS

1. Pre-Qualification / Pre-Approval

It’s never too early to start planning. Contact a VA Loan Expert & Your Real Estate Professional to get the ball rolling. VA Lender’s are delighted to have an opportunity to discuss your home purchasing goals. They will assess your current income and debt ratios. From the information you provide a lender will let you know how much home you can purchase. The three items a lender will need to determine your eligibility is a DD214 for discharged veterans, if active duty a statement of service is required, and a certificate of eligibility to determine you are eligible for the VA entitlement. Your lender will be able to help you attain your certificate of eligibility.

The maximum VA Loan amount in El Paso County Colorado including Colorado Springs is $417,000.00 If you will be in the process of military or DoD relocation you can start the process before you arrive in Colorado. Once you are pre-approved on your purchasing power then your lender will provide you with a formal Pre-Approval letter which provides you with an advantage of “approved purchasing power.” This will enable you to submit an offer on a property without any further delays.

2. Begin Home Search in Colorado Springs & the Pikes Peak area.

If you are fortunate to have received PCS orders to one of our 5 military installations within Colorado Springs you have many options. Our city is fortunate to have a selection of new home builders who roll out the red carpet to help active military and veteran’s obtain their new home. Many time your real estate professional will provide guidance when it come to price range and features in your new home.

3. Preview Properties.

While you are reviewing properties on the market and before you receive the keys on your home you do not want to make any major purchases that will affect your credit status. DO NOT make any major purchases including cars, trucks, furniture etc. DO NOT apply for new credit or credit cards. The most important thing TO DO is maintain your credit as usual and ensure all payments are made on time. Some lenders will pull credit 24 hours before closing to ensure employment and credit have not changed.

4. Submit Offer.

Once an offer is submitted an average is 4 – 6 weeks until you close on the property. A close quicker than 30 days can be done in certain cases if all pieces of the puzzle come together quickly. This includes home inspections and appraisals.

5. Home Inspection.

I always highly recommend home buyer’s engage the use of a home inspector. This is a great opportunity for the home buyer’s to accompany the home inspector as he or she checks the home for any issue that may affect your home purchase.

6. VA Appraisal

Once the home inspection is complete, the buyer advises the lender to proceed with ordering the VA Appraisal. VA appraisers generally take a week to 10 days to complete the formal appraisal. A rush appraisal can be order if necessary.

7. Closing

The date and time of closing is a mutually agreed upon date and location previously agreed on between buyer and seller. Once the paperwork and funding are complete the buyer receives the keys and your new home is ready for possession.