Are You Planning to Use Your VA Eligibility? Ft. Carson, Peterson, and AFA are are Colorado Springs' local military bases.
Little Known Facts About Obtaining a VA Guaranteed Loan...
There are Fantastic Advantages to use a VA Guaranteed Loan. They include no down payment, negotiable interest rates, no monthly PMI/MIP, ceiling on closing costs, and your choice of mortgage products. Plus all VA loans are assumable by ANYONE.
What Type of Home Can You Purchase? You can purchase an existing home, in good condition, a brand new home built to your specifications, a multi-unit (as long as you live in one of the units, you can rent out the rest). Or you can refinance your current mortgage, or refinance it and get cash out.
Did You Know? Your lender can obtain your certificate of eligibility , online, for you. It'll take 10 days to receive your certificate, so plan early.
Caveats, Buyer Beware. You can only have one VA loan at a time. You cannot use a VA loan to purchase a rental property. If your loan is assumed, until that loan is repaid and you are removed from ownership, you eligibility will be tied up, and occupancy is required. you must live in the home.
Do You Know about Adapted House Grants? SAH has a maximum grant of $60,000; SHA has a maximum grantof $12,000; and Temporary Grants are available to be used if your going be in a location for only a short while.
Important Information to Know...An Escape Clause allows for return of earnest money, if the loan is not approved. The Option Clause is used in the case that the house does not appraise at purchase price, and again, the earnest money is returned. Seller concessions cannot exceed 4% of the reasonable value of the home, and closing costs are NOT part of the 4%. Mortgage fees cannot exceed 1% of the loan amount, and no additional junk fees are allowed. Loan amount limits are any reasonable amount plus the VA funding fee. Your eligibility certificate will tell you how much you qualified for.
How's Your Credit? It Does Matter. Credit scores are not determind by VA, but by the lender. Bankruptcy can usually be disregarded after 2 years; chapter 13, after 13 months; chapter 7, 24 months; foreclosures after 2 years. Debit to income ratio should not exceed 41%. Most recent 12 months monthly obligations should be paid as agreed. And child care must be considered as part of your monthly obligations.
So, do you qualify? Are you prepared to buy your first home with a VA loan? I work with all military personnel and my closest bases are Ft. Carson, Peterson AFB, and AFA. Call me and I can get you started.
Marianne Snygg, GRI, ABR, ASP
Herman Group Real Estate
719.964.9682
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