In Colorado Springs, the military presence is everywhere. Military personnel are working hard at their bases, and their families are also part of our communities. Many military families want to buy a home here but might be hesitant based on the high demand and limited supply. No matter if you are a first home buyer or purchasing an upgrade from your starter, there are options available.
Part of the process of purchasing a home involves finding the right financing option. For those military personnel, a VA loan could be that option. Here are a few of the benefits of a VA loan.
No Down Payment or Private Mortgage Insurance
For those that active members of the military, veterans, or their families, a VA loan can be a financially viable option to purchase a home. Traditional loans require large down payments, meaning it can take years to save to purchase a home of your own. With a VA loan, there is no down payment, which means it can be more affordable to buy a home.
Additionally, there is no need for private mortgage insurance, as the government secures the loan. This option is an added savings, as it can positively impact the size of your monthly payment.
Several Loan Types Available
VA loans are not limited to just purchasing a home. They can be used to lower your interest rate through a refinance (IRRRL). Other options are geared towards servicemen and women with disabilities, allowing them to build a home that is adapted to their needs.
Military members can also tap into resources that can help them with property taxes and other state-based resources.
Specific benefits are available based on the length of your service, your current duty status, and the character of your service. Additionally, as with a conventional home mortgage, you will need to have a minimum of 620 credit score, meet income requirements, and provide a valid Certificate of Eligibility (COE).
For VA loans, you don’t need to have perfect credit, unlike conventional loans where your credit score has a greater impact on your interest rate. It is even possible to qualify for a VA loan just two years removed from a foreclosure or bankruptcy.
Multiple VA Loans
For those who are active military or veterans, VA loans are not a benefit that you use once and then cannot take advantage of again. Instead, you can receive financing under a VA loan multiple times, which can be a benefit for those in the military who are being reassigned.
Reduced Closing Costs
For those using VA loans, there are actual limits on the fees and costs that you can be required to pay at closing. The result is that you may need to bring less cash to the closing table. You also have the option of negotiating with the seller to have them pay specific closing costs as part of the purchase agreement.
Buying a new home is an exciting time and for military personnel, a home is way to put down roots in your new city or town. Contact Elevation Mortgage to determine the financing options that you qualify for as a member of the military or a veteran.