What is a VA Loan?

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The VA loan is a product of the GI Bill of Rights. Originally enacted in 1944, the VA loan is more popular than ever today. The federally-guaranteed loan provides veterans with flexible underwriting and no down payment requirements. Originally enacted to ensure proper housing for veterans and their families, the VA loan has since helped millions of families buy their dream home. Today, there are more than 25 million veterans eligible for this government-guaranteed loan program.

VA Loan Eligibility

Veterans who have any discharge (except dishonorable) and served at least 90 days during wartime or 181 consecutive days during peacetime are eligible. Any service member enlisted after September 7, 1980, or veterans that entered as officers after October 16, 1981, have a 2-year requirement and must meet one of the following:

• 24 months of continuous service
• Fulfilled the full period ordered on active duty, of at least 90 days during wartime or 181 days during peacetime

**Veterans with less than honorable discharge may apply for an appeal through the VA.

Any active member of the Reserves or National Guard must serve six years before they are eligible for a VA loan.

The VA Guarantee

The VA guarantee enables lenders to have flexible terms, including no down payment and flexible credit score guidelines. The guarantee the VA provides pays lenders 25% of the loan amount should a borrower default on the loan.

The loan guarantees and maximum loan amounts vary by Colorado county ranging from $510,400 to $765,600. Typically, you can borrow the total of the reasonable property value plus the funding fee within the above limits as long as you meet the credit/underwriting guidelines and the service requirements.

Who Provides VA Loans?

The VA does not write or fund VA loans, but provides guidelines to VA lenders. With my many years of experience, I have helped many Colorado Veterans get the financing needed for their home, whether it is a purchase or refinance. With 100% financing, there is no reason to pay rent.

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