VA LOANS

VA home loans (available to qualified veterans, surviving spouses) in Denver allow you to buy a home without a down payment. You can buy 1-4 unit homes, and approved condos with a VA mortgage. The VA does not impose a maximum loan amount. Meaning lenders can lend above the effective loan limits, but the Veteran may be required to make a down payment. For more information on loans above the effective loan limit, please call to discuss 303.779.0591

A VA loan can be used to buy a home, and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

Benefits of a VA loan include:

1. Lower interest rates than conventional mortgages.
2. Fixed or adjustable rate terms
3. Closing costs are sometimes lower than other financing types.
4. No private mortgage insurance (PMI) requirement.
5. No Pre-payment penalties
6. Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.
7. 620 Minimum FICO score (Exceptions for NO FICO score)
8. Waiver of funding fee should the Veteran qualify with sufficient service-related disability
9. VA Home Loans for Denver
10. Serving one’s country is the greatest sacrifice one can make. To recognize that sacrifice of service, the United States offers present and past service members the opportunity to realize the dream of homeownership through VA loans.

So what are VA home loans and how do they work?

In this guide, we’ll answer common questions that veterans have about VA loans.

What Are VA Home Loans?

VA home loans are part of a program administered by the U.S. Department of Veterans Affairs. These loans help active military members, veterans, and surviving spouses to become homeowners with very little (if any) down payment and more affordable interest rates.

An eligible borrower can use a VA loan to finance up to 100% of a home’s value. In addition to buying or building a new home, the borrower can also use a VA loan to make home improvements, such as solar panels, HVAC systems, insulation, weatherstripping, and energy-efficient measures. VA loans can also be utilized to refinance existing mortgages.

VA loans are fully insured by the U.S. government, which also sets all the terms, conditions, and eligibility requirements. However, the funds are distributed by financial institutions in the private sector — including VA mortgage brokers like Mortgage Maestro Group.

What Are the Eligibility Requirements for VA Home Loans?

To qualify for a VA home loan, a borrower must present a valid Certificate of Eligibility (COE), which they can get if they meet one or more of these requirements:

1. 90 consecutive days of active service in wartime
2. 181 days of active service in peacetime
3. 6 years of service in Military Reserves or the National Guard
4. In addition, spouses of service members who either died in duty or became disabled as a result of service may qualify for VA loans.

Once a potential borrower secures their COE, they must fulfill eligibility requirements as set forth by the VA mortgage broker. But in most cases, these added qualifications for VA mortgages are less difficult to meet than the eligibility criteria for conventional mortgages.

What Are the Benefits of VA Home Loans?

Some of the advantages of VA mortgages include:

• Little or no down payment
• Lower interest rates than conventional loans
• Lower closing costs, in most cases
• Choice of fixed or adjustable interest rate terms
• No requirement for private mortgage insurance
• No penalties on early loan repayment
• Possible VA help with trouble making payments

These factors can make VA loans attractive for homebuyers.

What Are VA Loan Limits?

There’s no maximum amount that you can borrow with a VA loan as long as you meet all of the eligibility requirements.

At one point, there was a maximum that an individual could borrow without making a down payment. This figure was known as the VA loan limit.

VA loan limits used to vary by county, usually according to how expensive homes in each county were. However, the Blue Water Act removed loan limits, so these are no longer applicable to eligible VA borrowers.

How Many VA Loans Can You Get?

In most cases, a borrower can only have one active VA mortgage at a time. However, once a VA loan is paid off, a borrower may take out another VA loan (even if they keep the house).

When the borrower sells the house and uses the proceeds to pay back the VA loan, they can take out another.

A qualified borrower can also take out another VA loan if they sell their property to a buyer who is eligible for a VA loan themselves and agrees to assume the existing loan.

In some rare circumstances, it may be possible to get a second VA loan via second-tier entitlement. Talk with a VA mortgage broker at Mortgage Maestro to find out more.

Types of VA Loans

VA loans are surprisingly flexible. Borrowers have many options for purchasing new homes or refinancing mortgages. Some of the most relevant VA loan types include the following.

Purchase Mortgage
This is the basic kind of VA loan, in which qualified borrowers can buy a house without a minimum down payment up to the VA loan limit.

Cash-Out Refinance
In cash-out refinance, a borrower with an existing conventional loan can replace it with a VA loan. This option cashes out existing home equity.

Streamline Refinance
This option changes the interest rate on an existing VA loan. It may lower the interest required or refinance a VA mortgage from an adjustable rate to a fixed one.

Rehab and Renovation Loan
This type of VA loan finances home improvements and rehabilitation.

Native American Direct Loan
For eligible veterans who are Native American, this loan helps buyers to purchase, build, or renovate homes occupying federal trust land.

How to Apply for a VA Loan

The loan application process for VA mortgages is a little simpler than it is for conventional loans — with no down payment, mortgage insurance, or stringent credit requirements, some of the typical legwork for a mortgage doesn’t apply. The basic steps are:

Get a Certificate of Eligibility
You can get a COE from the U.S. Department of Veterans Affairs by contacting them online or by mail. Your lender may also be able to get this certificate for you if they’re approved by the VA.

Find a Lender
Look for a qualified VA lender that will work with your credit and the type of VA loan you need. It’s always a good idea to get pre-approved by the mortgage lender you choose.

Find a House
After you put in your offer, the mortgage lender will review your financial status and order an appraisal on the home to make sure it meets VA requirements for safety. After everything is approved, you’ll close on the loan and move in!

Find Out More About Denver VA Loans from Mortgage Maestro

Mortgage Maestro Group was founded by a Navy veteran. We know how demanding but rewarding military service can be. We want to express our appreciation for your service by making it easier to buy the Denver home of your dreams.

At Mortgage Maestro Group, we can help you to navigate every step of the VA loan application process.

To find out more about our VA loans and other mortgage services, contact Mortgage Maestro Group online or by phone.