Benefits of Buying with a VA Loan in Colorado Springs

When you’re ready to buy a home in Colorado Springs, you’ll need to find a way to finance that purchase. If you’re a veteran or a current member of the armed forces, you may be eligible for a VA home loan instead of just having to rely on traditional mortgages. There are a few unique benefits to using VA loans in Colorado Springs. Here’s what you need to know.

No Down Payment Needed

Believe it or not, most buyers using VA loans in Colorado Springs won’t have to put a down payment on the house. This can save you thousands of dollars upfront and helps you get into a nicer home than you may otherwise be able to afford.

Fewer Closing Costs

VA loans help you lower the amount of money you have to pay in closing costs. Instead, the seller can cover those costs relating to the loan itself. This helps you avoid having to take out a larger loan than you really need.

Lower Interest Rates

Most VA loans in Colorado Springs have lower interest rates than traditional mortgages. Keep in mind that those interest rates are set by the lenders and are based on the way the market is. There is no cap on how high or low a VA loan’s interest rate can go.

No Early Pay-Off Penalties

Traditional mortgages often punish you if you try to repay the loan before the end of the loan’s terms. This is known as a prepayment penalty and helps the lender recover a portion of the interest they’re losing out on. VA home loans don’t have those prepayment penalties, so you’re free to pay off your house early without having to pay for the privilege.

They’re Guaranteed By the Government

VA loans in Colorado Springs are backed by a guarantee from the government that the lender will receive payment on the loan if you’re unable to pay the loan yourself. This makes it easier for people with lower credit scores and tight finances to get approved for the loan in the first place.