VA

Zero Down, 100% VA Financing

At 1st Colorado Mortgage Solutions, we are licensed to provide VA loans and we will strive to find you the most competitive VA Mortgage Rates available in Colorado.

Designed to offer long-term financing to American Veterans, VA Mortgage Loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice.

With great incentives on Purchases such as no down payment and no private mortgage insurance, the VA loan is specifically designed for the challenges faced by veterans and their families.

Benefits for a VA purchase:
  • 100% Financing – No down payment required
  • Minimum 620 Credit Score
  • Debt to Income ratios per automated underwriting approval
  • Maximum 41% DTI for Manual Underwriting
  • Owner Occupied only – borrower must live in the home as a primary residence
  • Full income / asset documentation only – W2 and/or tax returns

Is the VA loan the best way for 100% financing?
Do I need a down payment?
Do I have to pay my closing costs out of pocket?
What are the benefits of a VA loan vs. a conventional loan?
Are conventional mortgage rates better than VA rates?
If I have my certificate of eligibility, am I guaranteed to get a VA loan?
What is the maximum VA loan amount?
What is the VA funding fee?
I have a service related disability. Am I exempt from the VA funding fee?
I was turned down for a conventional loan. Can I possibly qualify for a VA loan?
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Is the VA loan the best way for 100% financing?
It’s fast becoming the only way for 100% financing as conventional loans have backed off considerably with high financing levels! The next best is the FHA loan program. But that requires a 3.5%** down payment.

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Do I need a down payment?
One of the great benefits of using a VA loan is that you can obtain the loan with no money down. If the loan and sales contract are set up correctly with the seller covering the closing costs, then you essentially get a home loan for 100% of the sales price.

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Do I have to pay my closing costs out of pocket?
It depends on how you structure the sales contract. You can have the seller pay as much as 6% of the borrower’s closing costs for a VA loan. Many people take advantage of this. Be sure to talk to your realtor about this seller concession.

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What are the benefits of a VA loan vs. a conventional loan?
With a VA loan, you can get 100% financing without mortgage insurance. This alone can save hundreds of dollars a month. You may be able to get approved with flawed credit. If rates improve after you close on your VA loan, you may be eligible for a streamline refinance. There is no similar option with a conventional loan.

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Are conventional mortgage rates better than VA rates?
Which rates are lower on any given day will vary. VA rates are comparable to conventional rates where the borrower has a great credit score and money for a down payment. The VA loan is the only way to get 100% financing these days.

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If I have my certificate of eligibility, am I guaranteed to get a VA loan?
You are guaranteed for a VA mortgage once qualification is complete. The lender has to make sure you are able to support the mortgage payment for the home. The borrower must still qualify based on their income, assets, and their credit history.

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What is the maximum VA loan amount?
The current maximum VA loan amount is $417,000. Even if you are eligible for a VA loan, you still have to qualify for the requested loan amount. This means that you may not be approved for the entire maximum loan amount. If you want to purchase a home that is more than $417,000, you would need to bring in additional money in the form of a down payment.

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What is the VA funding fee?
The VA funding fee is what the VA charges to guarantee the loan. It is not a fee that has to be paid at closing out of pocket. This fee can simply be added to your base loan amount and is paid over the life of the loan. This fee basically takes the place of the mortgage insurance that you would normally find on a conventional loan.

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I have a service related disability. Am I exempt from the VA funding fee?
Yes. If you are receiving disability income from the VA you should be exempt from any of VA’s funding fees. Be sure to tell your lender this; it can save you thousands of dollars. Visit the VA site for more information on disability funding.

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I was turned down for a conventional loan. Can I possibly qualify for a VA loan?
Yes, it is still possible to qualify for a VA loan. Please contact one of our mortgage loan specialists to request a VA loan quote.

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Will I have mortgage insurance?
One of the great benefits of the VA loan is that it enables you to borrower up to 100% of the home’s appraised value (up to $417,000) without having to pay mortgage insurance. The VA charges a funding fee that is much less expensive than mortgage insurance and isn’t part of your monthly mortgage payment.
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VA Mortgage | Borrower Requirements
  • A veteran is eligible for VA home loan benefits if he or she served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard after September 15, 1940, and was discharged under conditions other than dishonorable after either:
    • 90 days or more, any part of which occurred during wartime, or
    • 181 continuous days or more (peacetime).
  • 2-year Requirement: A greater length of service is required for veterans who: enlisted (and service began) after September 7, 1980, or entered service as an officer after October 16, 1981.
  • These veterans must have completed either:
    • 24 continuous months of active duty, or the full period for which called or ordered to active duty, but not less than
    • 90 days (any part during wartime) or 181 continuous days (peacetime).

Note: Cases involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.

VA Mortgage | Waiting Periods after Credit Hardship
  • 2 Years from Discharge of Chapter 7 Bankruptcy
  • Chapter 13 – If you have satisfactorily made at least 12 months worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit, the lender may give favorable consideration.
  • 2 Years from Foreclosure, Short Sale or Deed in Lieu of Foreclosure
Get Pre-Approved for a VA Guarantee Loan

Get started with the Pre-Approval process by completing the short form that best describes your goals