Colorado Springs is a great place to buy a home. It has close access to outdoor activities, a lower cost of living than nearby cities like Denver and Boulder, and a thriving downtown. If you’re a current or former member of the U.S. military, then you may be able to buy a home with a VA loan in Colorado Springs.
VA loans offer borrowers many benefits. They’re more affordable than conventional loan options and they often have very agreeable terms. Below, we’ve discussed eight advantages of buying a home with a VA loan in Colorado Springs.
Top 8 Benefits of Using a VA Loan in Colorado Springs
If you’re thinking about buying a home in Colorado Springs, a VA loan is a great option. Here are some of the advantages of using a VA loan to finance your purchase:
1. No Down Payment
It takes many people years to save up enough money to buy a home. However, the VA loan program does not require borrowers to put money down. This makes it easier for qualifying borrowers to become homeowners.
2. Great Interest Rate
VA loans are known for having some of the best interest rates. Often, interest rates are better than many other types of loans including FHA and conventional mortgages.
3. Reduced Closing Costs
VA borrowers typically pay less for closing costs. This is because the VA prohibits lenders from charging certain fees. Other fees, such as the mortgage origination fee, have a maximum limit.
4. No Private Mortgage Insurance
Normally, if a borrower puts down less than 20%, they have to pay for PMI. However, VA borrowers are not required to obtain private mortgage insurance.
5. Relaxed Credit Requirements
VA loans are easier to obtain because they have relaxed credit requirements. While the VA does not set credit score requirements, many lenders are willing to accept borrowers with credit scores as low as 580.
6. No Prepayment Penalties
Lenders cannot charge prepayment penalties for VA borrowers who pay off their loan early.
7. Easier to Meet Debt to Income Ratio
The VA does not set a maximum debt-to-income ratio. It does suggest one, but it’s fairly high compared to that for a conventional mortgage. The suggested maximum debt to income ratio is 41%.
8. Lifetime Benefit
Just because you buy a home with a VA loan in Colorado Springs now doesn’t mean you can’t ever use your benefits again. Your VA loan is good for life. That means if you decide to sell your home and move into a new one, you can use a VA loan program to fund your purchase.
For more information on the benefits of VA loans in Colorado Springs, just contact our office!