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Monday, 19 June 2017 17:36

VA Loan Basics

At Indigo Mortgage, we are honored to serve our nation's veterans as they purchase or refinance with a VA loan. Our VA loan division closes hundreds of VA loans each year and our loan officers are very experienced in the VA loan process. Here’s some basic information for veterans who are interested in this type of loan.

Borrowers can have multiple VA loans. If the veteran has paid off all previous VA loans, the vet can take out another loan. In fact, a veteran can have two VA loans at the same time. Borrowers can split their VA entitlement and purchase two properties, as long as both loans do not exceed the combined total of $417,000, and the new loan is more than $144,000, as well as the new VA loan being for an owner-occupied home.

VA allows 100% cash-out on refinanced loans. If you've had a lender tells you that the VA will only allow 90% cash out, you've come to the right mortgage broker! At Indigo Mortgage, we offer 100% cash out, without compromising our low rates.

VA now allows jumbo mortgages as well, allowing borrowers to get mortgage loans over $417,000.

The VA never requires mortgage insurance for the loan, but there is a funding fee. However, that funding fee can be waived if the veteran has a disability of 10% or more.

Be wary of lenders offering outrageously low rates for VA loans. Typically, when a lender offers unbelievably low rates, they’re adjustable rate mortgages, not fixed rate mortgages or they have very high fees. These types of mortgages can be very expensive to buy down, and aren’t really worth it.

When you’re shopping for a VA loan, remember to shop several mortgage sources. A mortgage broker like Indigo Mortgage that has extensive experience in VA loans can often save you money and time!

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