The VA home loan is an essential resource for every eligible veteran to think about. Below is a short information guide followed by a case study which outlines how U.S. Military Veterans have benefited from using their VA loan for a place to live and more.
First of all, as you may know, here is a list of what makes a VA loan so special.
- 100% financing, zero down payment, and often can even have $0.00 in closing costs
- More flexible FICO score requirements
- More flexible income and qualification standards
- The ability to use the loan more than once, and on different properties simultaneously
- Zero monthly mortgage insurance
- Lower interest rates
- Often lower appraisal costs
As you can see, there are many benefits to using the VA loan. Some might say it is the best government-backed loan available.
Case study: A veteran back from Iraq moves to Colorado and starts his job in a technical transportation field. After 3 months of working in the country, he applies for a VA home loan to purchase a home in Arvada, Colorado. His FICO score is ok at 645 but he has more than $14,000 in debt which total over$500 in monthly payments. He calls Colorado Lenders, Inc and starts his mortgage application. After working only 3 months since his military duty, he is qualified for a $350,000 home with 0% down.
In addition, his Mortgage Broker informs him that he can potentially ask the seller for up to 4% of the purchase price in seller concessions which can be used to pay off current debt at closing. Because the debt will be paid off at closing, the bank doing the VA loan is willing to “exclude” the $500 per month of debt for qualification purposes. This allows the Veteran to qualify for more of a home as well as eliminate a $500/month payment from his current debt. The Veteran now has a new home to move into and significantly less in monthly debt – All with $0.00 out of pocket! A great outcome all around.
To get started on the loan process, we always recommend reading as much information as possible on the website. Once you are ready, give us a call at 303-578-9202 to start the mortgage process.