VA Home Loan Benefits in Colorado

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Veterans have many loan options available to them, including the VA loan. With no down payment, it’s easy to put the days of renting behind you.

In my many years working with veterans, I’ve seen many benefit from VA loans because of the little money out of pocket required. VA loans make homeownership much more accessible faster for those that served our country.

If you’re considering your loan options in Colorado, consider the VA loan’s benefits below.

VA Loan Benefits in Colorado

• No down payment – This is the most popular VA home loan benefit. Most loans require at least 3 percent down, if not more. It can take many years to save thousands of dollars to invest in a home. The VA loan doesn’t require a down payment and you don’t need a specific credit score to qualify for it – all veterans don’t need a down payment. There’s no reason to rent anymore.
• No mortgage insurance – FHA and USDA borrowers pay monthly mortgage insurance for the life of the loan. Even conventional loan borrowers pay PMI with less than 20 percent down, even though they can cancel it once they owe less than 80 percent of the home’s value. VA loans, though, don’t have mortgage insurance and don’t require a down payment. You save thousands of dollars right from the start.
• Low interest rates – VA loans have competitive interest rates, which are often lower than other government loans, including FHA loans. Low interest rates keep your mortgage payment down and lower your overall loan costs.
• Limited closing costs – Sellers may pay 100 percent of your closing costs plus 4% in sellers’ concessions, lowering your costs even further. Some veterans get away with bringing no money out of their own pocket to the closing, making homeownership even more accessible.
• No prepayment penalties – You are free to pay the loan off without paying a penalty. If you sell the home or want to pay the loan down faster, you are free to do so.
• Use of second-tier entitlement – You may use restored or remaining VA benefits even if you used them before. This means you can have more than one VA loan in your lifetime, if you decide to move or buy another home.
• Assumable loan program – Some lenders allow loan assumption, which allows someone else to take over your loan where you left off. This helps when you sell your home during tough times and have a veteran with entitlement interested in your home.
• A streamline refinance option – Veterans with a current VA loan may refinance for a lower rate or monthly payment with little verification. This makes it easy to save money on your mortgage without the headaches traditional refinance programs cause.
• A cash-out refinance option – Veterans with or without VA financing may use this option to tap into their home’s equity or refinance into the VA loan program for the first time. Some lenders allow veterans to borrow as much as 100 percent of their home’s value, while some limit the cash-out loan-to-value ratio to 90 percent of the home’s value.
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