Advantage of a VA loan and benefits!

One big perk of being in the military or retired from the military is the savings you can get with a Veterans Administration (VA) home loan.  A VA Loan is a great option for military buyers and their families as it can save you thousands up front as well as in the long run.  The information provided in this blog can also be found on the U.S. Department of Veterans Affairs website.  As a Real Estate Agent in Colorado Springs, we see tons of military families moving into our beautiful area so in today's blog we are reviewing what a VA Loan is and the requirements to obtain this loan, as well as, the benefits.

What is a VA Loan?

The VA Loan was created in 1944 through the GI Bill which was signed into law by President Roosevelt to provide veterans and active military personnel with a more affordable home buying opportunity.  This government-based loan option provides a chance for more than 25 million active and retired military to buy a home.  VA Loans are given by private lenders to eligible veterans and active military personnel for the purchase of a home for their own personal use that is backed by our government.  The VA Loan has many benefits to save money for those that qualify and can make homeownership possible for many military families.   

VA Loan Benefits

Here is a list of all the benefits of using a VA Loan:

  • No Down Payment required in most cases.  Most loans require a down payment but with a VA Loan, you will have the opportunity of being a homeowner without the upfront down payment expense.
  • No monthly mortgage insurance premium to pay.  If a buyer doesn't have the full down payment on a home or instant equity equal to the down payment amount, the buyer would have to pay a mortgage insurance premium every month.  This amount is included in your loan and the monthly mortgage payment amount can equal up to hundreds of dollars a month. With a VA Loan, you will not be required to pay this additional amount that will save you thousands over the course of your loan.
  • Lower interest rates available 
  • No prepayment penalties.  On a VA loan, you can pay off the loan amount at any time.
  • There are options to save on closing cost to make the out of pocket expense for the borrower more affordable.
  • Appraisals will be done by a VA appraiser.
The above benefits mean the borrower will save thousands of dollars over another loan type.  To get more details on the benefits listed above, you can go to US Department of Veterans Affairs or visit a mortgage lender to have them walk you through the details.

VA Loan Eligibility

Your length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits.  VA-guaranteed loans are available for homes for your occupancy or a spouse and/or dependent (for active duty service members). To be eligible, you must have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility (COE).

The VA requires you to have served a period of time either during wartime or peacetime without having a dishonorable discharge.  To find out if you are eligible you can check here,
In Colorado Springs we are home to a lot of military families so our Colorado Springs real estate team deals with many buyers utilizing the VA Loan program.  We can assist in your home buying process as well as recommend top-notch lenders.  Not only do we specialize in Colorado Springs military relocation, we have an aggressive military cash back program available to all of our relocating families using our Colorado Springs real estate team.  If you are thinking of buying your Colorado Springs home, we hope we are the team you call.  The MacGuire Team has been selling real estate in Colorado for over 25 years, and before that, Mike has been a lifelong resident. If you want to know what's trending in the Colorado real estate market, we can help! If you want to buy or sell a home in Colorado Springs, we can help with that, too!

Mike MacGuire
Colorado Springs Real Estate Agent
The MacGuire Team
6760 Corporate Dr
Ste 300
Colorado Springs, CO 80919

719-536-4324 or 719-660-6793

*Some of the VA Loan information was derived from the US Department of Veterans Affairs 


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