How to Get Your VA Loan Approved in Denver Colorado

Be an expert with our how to
videos for real estate. Here’s some tips on
the loan process. Hi. I’m Joe Massey, senior
loan officer with Castle & Cooke Mortgage. And today, we’re going to be
talking about VA loans, and qualifying for a VA loan for
your new home purchase. So, first off, it is important
to understand what a VA loan is. VA, of course, stands for the
Veterans Administration. And this is a loan that is
guaranteed by the government for active military members,
and honorably and general discharged veterans. So that’s the first important
point, is if you’re thinking about a VA loan, you or your
spouse needs to be in the military, or have been in the
military, and achieved the minimum requirements to qualify
for your VA mortgage eligibility. The first big benefit of a VA
mortgage is the minimum down payment is zero. This is truly a 100% loan. You don’t have to put out any
money as long as you can qualify, based on your
income and assets. So VA really is a huge benefit
for our veterans to purchase their home. They don’t have to have
saved up a lot. Really, really nice benefit that
you don’t have to put any money down. The next important point on
VA is there is no monthly mortgage insurance. So with no money down on a
conventional or FHA loan, with your minimum down payment, you
would have monthly mortgage insurance, possibly also upfront
mortgage insurance. VA is going to allow you to save
a significant amount of money by not having to pay that
mortgage insurance on a monthly basis. Now the VA will have the upfront
funding fee, which is charged by the VA as a cost to
the veteran for using their benefits, but it’s actually
financed into the loan, and any disabled veterans do
not have to pay that. So for your specific scenario,
when we sit down and we’re talking about your VA
application, we’ll look into that, tell you exactly what
that funding fee is that’s going to be financed
into the mortgage. A great benefit on VA loans,
of course, is the low interest rates. Interest rates on VA are very
low compared to conventional, and going to be very similar
to an FHA mortgage. This, again, is going to allow
you to have a 30-year fixed rate payment that you know
isn’t going to change. And you’ll be able to set up
your monthly budget, knowing exactly how much you’re going
to be spending on the house every month. Minimum credit scores on VA are
generally going to be a 640, depending on the type of
VA loan that you’re getting. If you’re looking at a high
balance loan and things like that, we may have a little
bit higher credit score. But for the average homeowner
purchasing a property using VA financing, 640 is the
minimum credit score that you want to have. An important point on VA loans
is that you can actually use them for multiple
property types. You can use it to purchase a
single-family home, a two- to four-unit property as long as
you’re going to be living in one of the units, a town
home, and a condo. Similar to FHA, VA has a condo
approval list that, once you go out and you’re looking at
properties, we will pull up the list of all the condos in
the area that you’re looking at and make sure that you’re
working on approved condos, and you don’t get something
under contract that’s not VA-approved. Seller-paid closing costs also
an important point with VA. The seller can contribute up
to 4% of the purchase price towards your closing costs. This can cover your funding fee,
it can cover processing costs, title insurance,
homeowner’s insurance, just about any type of cost
associated with getting a new property. The maximum loan amount on a VA
loan with no money down is going to be very similar to
conventional, $417,000. There are options to go above
that, but you will be required to make a down payment. So if you’re looking to apply
for a VA loan for a larger home, we’ll want to sit down and
talk about the individual options available to you. Also keep in mind that VA loans
are only going to be for your primary residence. It cannot be used for second
homes or investment properties. You have to be intending to live
in the property in order to qualify for a VA loan. So to talk about the pros and
cons of VA financing, the big benefits are no money down, very
low interest rates, and no monthly mortgage insurance
for qualified veterans. The downsides, of course, this
is not a program that’s open to everybody. You have to be a qualified
veteran or active military member. There will be that
upfront funding financed into the loan. And it is going to be for your
primary residence only. So veterans that are looking to
get involved in investing and purchasing investment
properties, we would need to talk to you about conventional
financing, rather than VA. So I hope that helps inform
you on VA financing. It’s really a great benefit that
we encourage all of our veterans take advantage of. Thanks for watching this video,
and look forward to seeing you in future videos
to talk about other lending options.

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