8 Things To Know About VA Loans

 In Different Types of Loans, First-Time Home Buyers

VA loans are government loans that are a benefit of having served in the military.  They are available to active and retired members of the military and their surviving, unmarried spouses.  If you qualify for a VA loan, it will be the cheapest mortgage option for you.

Here are some things that every home buyer needs to know about VA loans.

Down Payments, Mortgage Insurance, and Closing Costs

  • A VA loan requires no down payment.  There are limits on the size of a VA loan, and those limits depend on the county in which the property is located.  The limits are pretty high, though.  In the Metro-Denver counties, the VA loan limit is $561,200.  In Boulder County, it is $626,750.  You can buy a house for more than the county limit, but you will have to pay a down payment if you exceed the limit.
  • There is no mortgage insurance for a VA loan.
  • If you don’t have enough money for the closing costs, the seller is allowed to pay for them for you.  Also, a relative is allowed to give you the money for the down payment as a gift.

Income Limits and Eligibility for VA Loans?

  • There is no income limit for VA loans.  Everyone, no matter how high their income, is eligible.
  • VA loans are not just for first-time home buyers.
  • You can have more than one VA loan at the same time.

Interest Rates and Waiting Periods

  • Interest rates do not depend on your credit score, like they do with conventional loans.  Everyone gets a low rate.
  • The waiting periods after bankruptcies, foreclosures, and short sales are much shorter for VA loans than they are for conventional loans.  VA loans only require a 2 year waiting period after a bankruptcy, and a 2 year waiting period after a foreclosure or a short sale.

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