If you are a first time homebuyer or someone looking to purchase property in the united states you may be considering all the different ways to finance your purchase. If you’re a military member, you’ll quickly find that the VA loan is one of the best options for you. Colorado VA loan limits may exist in your county, though. Here is a breakdown of everything you need to know about your VA loan entitlement.
What is a VA Loan?
At White Buffalo Realtors, we want every client to get the best deal possible on their home purchase. We find that many people are unaware that they may qualify for a VA loan. You may even be able to borrow more than you think depending on eligibility.
The VA loan is a $0 down mortgage option available to Veterans, Service Members and select military spouses. VA loans are issued by private lenders, such as a mortgage company or bank, and guaranteed by the U.S. Department of Veterans Affairs.
VA Loan with Full Entitlement
As of 2020, if you have full entitlement, you don’t have a VA loan limit. Eligible members no longer have limits on loans over $144,000, meaning buyers won’t have to pay a down payment! The VA also guarantees to lending entities that if you default on a loan that’s over $144,000, they’ll pay them up to 25% of the loan amount.
You have full entitlement if you meet ONE of these requirements:
- You’ve never used your home loan benefit, or
- You’ve paid a previous VA loan in full and sold the property (in this case, you’d have your full entitlement restored), or
- You’ve used your home loan benefit, but had a foreclosure or compromise claim (also called a short sale) and repaid us in full
VA Loan Limits Colorado
Colorado VA Loan limits exist only for members with remaining entitlement. This limit is actualy set by the county you live in. This means that if you default on your loan, the VA will pay your lender up to 25% of the county loan limit minus the amount of your entitlement you’ve already used. You can check your county loan limit here.
If you’re able to make a down payment, you may be able to borrow more than the county loan limit with a VA-backed loan. However, your lender still needs to approve the loan. The lender you work with can determine the loan you can afford.
Military Relocation Specialists
As you can tell, the buying and selling process can be complicated for anyone! That’s why White Buffalo is here to help. We provide support to military members, first time homebuyers, sellers, relocating professionals – you name it! We’re devoted to making sure our clients have a beautiful and comfortable place they’re proud to call home. If you’re interested in getting started on finding your new beautiful home in Colorado, get in touch!