With so many Colorado veterans taking advantage of the Veterans Administration loans to purchase a property, there is some confusion about exactly what the “zero down” VA loan means.
The VA purchase loan does indeed offer the veteran a zero down payment needed on the home; that means the VA will allow financing of 100% of the property’s purchase price. But that does not mean there will be no out-of-pocket costs. When purchasing any property, there are closing costs associated with that purchase, and those are the responsibility of the buyer.
The VA does not cover those closing costs and they also do not allow these fees to be rolled into the new loan.
When Indigo Mortgage Colorado does a pre-qualification for veterans, we always review this with the veteran so they know what costs they’d likely have to pay at closing. We often find that online lenders and big national lenders are not advising veterans about these fees that will be part of their closing costs. This can and will cause problems at the closing, if the veteran is not prepared.
Remember Zero Down VA loans do not mean zero out of pocket expenses. If you’re a veteran looking to purchase a property, call Indigo Mortgage Colorado for a free consultation and pre-qualification.