Mortgages 101 – Sorting out the Options, Part 3: VA Loans by Jennifer Prestwich Your North Suburban Denver REALTOR

When it comes to mortgages, there are a lot of options to sort out.  When I am working with clients, they often ask me about mortgage rates and down payments, and the answer can vary.

In Part 1 of the series, we examined FHA mortgages.  In Part 2, we took a look at Conventional Mortgages.  Part 3 will examine VA Loans – the lending criteria and the Pros and Cons.  This is meant to be an overview – a licensed Loan Officer will help you examine all of the options more closely to help you determine the right choice for you.

VA Loans: VA, or Veteran’s Administration loans can be used by any Active Military or Honorably or General Discharged Veteran.  The does include Coast Guard and Military Reserves.

Minimum Down Payment: 0%!! This is one of the few NO MONEY DOWN loans available nowadays.

Mortgage Insurance: None required.

Minimum Credit Score: 640

Ownership Types: Primary residence only.

Property Type: Singe Family, 2-4 Units, Townhomes, Condos- condos must be on the VA Approved List, which will be available from your lender.

Maximum Loan Amount: $1,250,000, but if you are borrowing more than $417,000, a down payment will be required.

Pros: No monthly mortgage insurance, ability to put $0 down, very low rates and very easy qualifications for veterans.

Cons:  Must be a qualified veteran or active military, loan will have VA funding fee added to the loan amount unless the client is a disabled veteran.  This funding fee is usually between 2.1%-3.3%, but is rolled into the loan.

Want to live in your dream neighborhood for $0 down?  Call me at 720-341-5235 to find out what’s available in Henderson, Thornton, Northglenn, Broomfield, and Westminster!

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