Military Homebuyer Colorado Springs January 2014 | Page 14

HOMEBUYER WELCOME VA LOAN CULTURE You can use your full VA loan entitlement over again as long as you pay off the loan each time. The VA Funding Fee (about 2 percent of the loan amount) helps the VA keep the program going and is required on both purchase and refinance loans. It can be waived entirely for those with service-connected disabilities. THEY'RE AVAILABLE DESPITE FORECLOSURE OR BANKRUPTCY THEY’RE ONLY FOR CERTAIN HOMES Veterans with a history of bankruptcy or foreclosure can secure a VA home loan. Even borrowers who have had a VA loan foreclosed on can still utilize their home loan benefit. The VA loan designed for single-family homes in move-in condition. You can not use them to purchase a fixer-upper or a place of business. THEY’RE FOR PRIMARY RESIDENCES ONLY THEY’RE NOT ISSUED BY THE VA Don’t bother trying to use your VA loan benefits to buy an investment property or a vacation home in the Poconos. VA loans are for primary residences, with few exceptions. THEY DON’T HAVE A PRE-PAYMENT PENALTY You can make extra payments any time you want, saving interest over the life of your loan. Just an extra $100 per month can shave years and tens of thousands of dollars from the balance. THEY’RE GUARANTEED BY THE GOVERNMENT If you have a VA entitlement, the agency guarantees up to a quarter of the loan amount. The guaranty gives lenders confidence and helps service members secure great terms and rates. Colorado Springs Homebuyer GET STARTED THEY COME WITH A MANDATORY FEE THEY'RE REUSABLE 14 LOCAL The VA isn’t in the business of issuing home loans.Instead, the agency provides a guaranty on each qualified mortgage loan. MOST DON'T KNOW ABOUT THE VA HOME LOAN BENEFIT For the vast majority of veteran borrowers, VA loans represent the most powerful lending program on the market. These flexible, no-down payment loans have helped more than 18 million veterans become homeowners since 1944. But even some longtime VA borrowers aren’t familiar with all the program’s unique benefits and quirks. Here’s a look at some of the key things veterans and their families might not know about the VA home loan benefit. ColoradoVALender.com THEY HAVE LIMITS ON CO-BORROWERS The only acceptable co-borrower for a VA loan is your spouse or another eligible veteran who will live in the home with you. THEY DON’T HAVE MORTGAGE INSURANCE The VA guaranty eliminates the need for mortgage insurance or mortgage insurance premiums, helping borrowers save even more money each month.