Getting Started with Denver VA Home Loans

Purchasing a home is something that many adults dream of. But when the bulk of your money goes toward your monthly bills and you don’t have much to put toward a down payment, it can seem unattainable.

There’s good news for active-duty service members, veterans, and eligible surviving spouses, though: The U.S. Department of Veterans Affairs (VA) offers a loan program that’s designed to help with the purchase of a home. Talk to one of our Denver VA mortgage brokers today!

What is a VA Loan?

VA loans require no down payment, which can give veterans and their families a bit of assistance when they need to purchase a home. In addition, VA loans can be easier to qualify for and deliver extra benefits — more favorable financing options or lower monthly payments, for example — than buyers might get through a conventional loan.

While these loans are still approved and issued through lenders, the VA insures the loans. If a homeowner defaults, the VA will pay up to a certain portion of the loan, reducing the risk for lenders.

With the help of Denver VA mortgage brokers, like Hunter Lending, you can find out if you qualify for Denver VA home loans.

Who is Eligible for Denver VA Home Loans?

In order to be eligible to participate in our Denver VA home loans program, you must be an active-duty service member, a veteran, or an eligible surviving spouse. This program extends across all military branches, as well as the Reserve and the National Guard.

Eligibility will depend on factors like:

  • Length of service commitment
  • Duty status
  • Character of service
  • and more

If you meet the VA eligibility requirements, you must still meet lender qualifications to secure loan approval. Before you can obtain a VA home loan in Denver, the lender will look at your:

  • Credit score
  • Credit history
  • Income and debt-to-income ratio (i.e., your ability to repay the loan)
  • Requested loan amount

While most lenders will also factor in your down payment, this won’t be a problem when you apply for a VA loan with one of our Denver VA mortgage brokers. If you do have a down payment, be sure to consider all of your loan options to find the best terms.

How Does a Denver VA Home Loan Work?

The main difference between conventional and VA loans is that a VA loan is government-backed. Although these loans are issued by private lenders, like a bank or a VA mortgage broker, the VA guarantees a portion of the loan, which means that you’ll be able to enjoy benefits like zero down payment and potentially lower monthly payments or other advantageous terms.

It’s important to understand that a VA loan benefit is not a one-and-done deal. As long as you are eligible, you can take out an unlimited number of VA loans (although you can only have one active at a time) for an unlimited number of years.

Uses for a VA Loan

As you’ve probably figured out by now, VA loans can be used for the purchase of a home. However, you can also use this type of loan for certain kinds of home improvements, including energy-saving upgrades to:

  • Heating/cooling systems
  • Water heaters
  • Insulation
  • Weather stripping/caulking
  • Storm windows/doors
  • and more

You can even use a VA loan to install solar power for your home. As long as the energy-efficient upgrades are approved by the VA, you can take out a loan to upgrade and add value to your home.

Taking Full Advantage of Our Denver VA Loan Program

One of the best things about VA home loans is that they’re not a one-time deal. You can get another VA loan when you divest yourself of the one that you currently hold, and there are a couple of ways to do it.

First, you could sell your current home (paying off the VA loan attached to it) and purchase a new property. Alternatively, you could simply complete payments on your current mortgage, which would free you up to purchase a new property with a new VA loan.

Finally, you could sell your current house to a qualified veteran buyer who is eligible to assume the existing VA loan on the property (and is willing to do so).

There is no limit to how many VA loans you can take in the course of your lifetime, although generally, you’ll have to take them one at a time.

In some cases, it is possible to hold two VA home loans at the same time by using a second-tier entitlement, as long as you have entitlement remaining. This can be an appealing option for active-duty military members who are given PCS orders after purchasing a home at their current location, for example. They can keep the home, perhaps renting it out, and still purchase a new home to use as a primary residence at their new location. 

It could also be applied in situations where a short sale or foreclosure has occurred, depending on the circumstances.

Discussing Loan Limits with Your Denver VA Mortgage Broker

Just because you are eligible for a VA mortgage loan doesn’t necessarily mean that it will be the best option for you. Although veterans enjoy several benefits from participating in this loan program, you need to understand that there are also limits.

While you can borrow as much money as any given lender is willing to extend, the amount that the VA will guarantee is limited. VA loan limits change annually and are based on the housing market in general, as well as the area in which you buy a home.

Borrowers may face additional limitations depending on their circumstances. For example, if you have one or more active VA loans, it will impact your entitlement. In addition, losing a prior VA loan to foreclosure could impact your benefit.

Of course, if you’re already using a portion of your benefit, there will also be limits to the remaining entitlement that you can enjoy. Keep in mind that the limits in question do not relate to the value of the loan that you can be approved for, but they do relate to the portion of any given loan that the VA will guarantee.

Obtaining a VA Loan with our Denver VA Mortgage Brokers

Obtaining a VA loan is similar to the process for a conventional home loan, but there are a couple of extra steps that you’ll need to take to gain the added benefits of a VA loan. First, you’ll need to prove your eligibility through a Certificate of Eligibility.

From there, you’ll want to prepare for the loan application process by collecting needed paperwork, including:

  • Proof of employment/income and a two-year history of earnings
  • Tax information for the past two years
  • Information about your bank accounts, including savings and investment accounts

 It’s also wise to request a free credit report so that you can check your credit score and history, as lenders will use this information to set the terms of your loan and you won’t want to be surprised when they do. Finally, you need to choose a reputable, VA-approved lending institution like Hunter Lending to process your loan and ensure that you get the best possible terms.

Get In Touch.

Office Location

1630 Welton St
7th Floor
Denver CO 80202

Phone

303-292-5363

Office Hours

Monday-Friday: 8:00am-8:00pm
Saturday-Sunday: 9:00am-5:00pm

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In Addition to these standard loan programs we offer a large number of specialized loans to fit your needs.