Benefits Of VA Loans
Looking to secure a home loan in Colorado Springs, CO? Getting a mortgage can be tricky these days, but if you’ve served in the military, you may qualify for quick approval with a VA Loan.
While getting a mortgage for a loan on a new house recently bought, Veterans Administration Loans, or VA loans, are helpful to those who have been in the military. Instead of having to do a full documentation reference, you can lower your interest rate by being a veteran.
Ways To Use A VA Loan
Paying off debt, making home improvements, and helping fund a kid’s school are all things that can be difficult when you purchase a home. VA offers many different kinds of loans, so you can breathe a sigh of relief.
- Purchase Loans: Helps you purchase a home at a competitive interest rate, often without requiring a down payment. Cash Out Refinance loans mean you can take cash out of your home equity to help with other life costs.
- Interest Rate Refinance Loan: This loan, also called the Streamline Refinance Loan, can assist in refinancing your existing VA loan to acquire a lower interest rate.
- Native American Direct Loan Program: This loan helps eligible Native American Veterans finance the purchase, construction, or improvement on those homes through Federal Trust Land, or it can help reduce the interest rate on a VA loan.
- Specially Adapted Housing Grants (SAH): In order to help veterans with a permanent and total service-connected disability purchase or build an adapted home, this grant helps with widening the doors, installing ramps, or other unique modifications to meet their specific needs.
- Other Resources: many states offer additional resources to veterans, including property tax reduction.
VA Loan Qualification Types In Colorado
Eligibility for these loans is based on your length of service, your service commitment, duty status and character of service. These details help determine what specific home loan you are qualified for. Depending on those, you can qualify for these different loans.
- Purchase Loans and Cash-Out Refinance: These are good for homes that you, a spouse, or an active-duty dependent own. Eligibility is based on having satisfactory credit, sufficient income to meet the monthly financial obligations, and a valid Certificate of Eligibility (COE).
- Interest Rate Reduction Refinance Loan (IRRRL): This VA-to-VA loan is available if you already have a VA loan on the property. This IRRRL can help lower your interest and reduce your monthly payment on your existing VA loan.
- Native American Direct Loan (NADL) Program: This supports Native American Veterans purchase, construct, improve, or refinance a home on Native American trust lands. To qualify, your tribal organization must participate.
- Adapted Housing Grants: VA helps veterans with total and permanent disabilities related to military service obtain suitable housing through Specially Adapted Housing grant.
There are different ways to apply for each of these specific mortgage options, including online, through your lender, or by mail. In order to qualify, you need suitable credit and sufficient income, a COE, and other documents required to purchase a home. It’s important that you prepare all documents needed before you apply for a COE. To receive a SAH grant, you must receive a rating from VA that you are medically eligible, and proof that it is medically feasible for residence in the proposed building. You must apply to the Acquiring Special Adapted Housing or Special Home Adaptation Grant.
How To Start A New VA Loan
Fidelity Mortgage Solutions is here to help you go through each step of the VA loan process. The first thing we suggest is to get Pre-Approved for a new VA Loan. Getting pre-approved first will provide you with the amount that you are able to finance. It will also help you and your realtor narrow down the houses you look at and bid on. Being pre-approved also is great when the home buying market is competitive. It will give the seller comfort and you an advantage in getting your bid accepted.
Veterans Administration loans also come with an option to lower your interest rate without having to go back and do full documentation refinance. Usually, no appraisal of your home, no income documentation, and no assets are required to qualify. As long as you are lowering your payment, and have made your home payments on time for the last 12 months, then you may qualify for the VA Interest Rate Reduction Refinance Loan.