VA Loan Benefits

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

• Down payment options – Eligible VA borrowers may qualify without a required down payment, subject to lender approval and property requirements. Funding fees, closing costs and other expenses may still apply.
• No monthly mortgage insurance – VA loans do not require monthly mortgage insurance, though a VA funding fee may apply unless the borrower is exempt. Compare total costs with other available loans.
• Interest rates – VA loan rates vary by lender and borrower. Compare actual offers, including APR, fees and loan terms.
• Closing costs – Seller contributions may help with certain costs, subject to VA rules and negotiation. You may still need funds at closing; ask for a personalized estimate.
• 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 – Eligible borrowers with an existing VA loan may explore a VA streamline refinance. Compare any new rate, payment and closing costs against your current loan; savings are not guaranteed.
• 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.