VA Home Loans
El Paso County & Colorado Springs
2008 Max Loan Guaranty $417,000.00

Frequently Asked Questions

1. What is a VA HOME LOAN?

VA home loan guaranties are issued to help eligible service members, veterans, reservists and
unmarried surviving spouses obtain homes. For additional information or to obtain VA loan guaranty
forms, visit http://www.home loansVAva.gov/.

2. Why should I use a VA home loan?

The VA loan program helps active duty and retired military personnel purchase homes. The VA will
guarantee 100% financing on a home at a competitive rate, with having to pay mortgage insurance. The
VA also limits the types of fee that can be charged, protecting against predatory lending.

3. Does the VA lend money?

the VA does not lend money; it insures the money that lenders provide. For your best benefit you should
work with a mortgage company that specializes with VA loans. There are many great VA approved
lenders in Colorado Springs and El Paso County.

4. What should I do first?

Locate your COE. What's that? COE stands for Certificate of Eligibility. This certificate proves that you
are a veteran and therefore, eligible for a VA guaranteed home loan. You've probably have a copy stashed
with your Important Military Papers. If not, Mortgage companies that work with VA get a COE for you
during the loan process. If you mortgage company has to go to VA to obtain your COE you must allow
time for processing. Due to popularity of this loan program this may take several weeks. If you already
have it in your military file, you are miles ahead of the game..

5. What is a funding fee?

The VA funding fee is a fee added to VA loans. The Department of Veteran Affairs uses these fees to
help fund its VA loan program. The first time you use a VA loan, the funding fee will be 2.15% of the
loan amount. For each subsequent use, the funding fee will be 3.3% You will be required to pay it,
unless you have a documented service-related disability of 10% or greater, in which case the funding fee
is waived.

6. What does a VA Lender need from me?

A VA lender will want to know your income, debts, Social Security Number and your approval to pull a
credit history report.

7. What are the benefits of a VA guaranteed loan?

Great News! A VA loan offers 100% financing with no mortgage insurance fees. This can save a home
buyer over $100 - $200 per month The loan is in most cases assumable and is less restrictive on credit
than most conventional loans.

8. Can I use my VA eligibility more than once?

Yes,, but in most cases you can only hold on VA loan at a time. After the first home loan is paid in full
your eligibility will be restored for another loan.

9. What is the funding fee for a second VA Loan?

The funding fee is 3.3%. But with a 5% down payment, the funding fee drops to 1.5%

10. How important is my credit score to the VA?

The VA looks at credit history for last 12 months but does not emphasize credit scores (FICO). VA does
want a clean credit history in borrower's previous 12 months.

11. Can I use a co-borrower to help get loan approval?

VA only allows spouse as a co-borrower. Many Va approved lenders offer conventional financing, which
may be more suitable if a co-borrower other than a spouse is needed to secure a loan.

12. Can my spouse co-sign so that I can obtain a larger VA loan?

Your spouse may co-sign in order to help you qualify for a VA loan. However, the spouse's liabilities in
addition to your spouse's income, will be considered when determining eligibility and loan amount.

13. Can I have 2 VA loans at the same time?

Short answer - NO. You can have only one VA loan at a time, and it must be used for a home this is
your primary residence. After you pay off that loan, you are eligible for another VA loan.

14. Does it cost anything to pre-qualify for disqualify VA loan?

No, it does not. The VA loan specialists that work with VA do not charge pre-qualification fees.

15. What are the primary differences between VA & conventional loans?

VA loans require no money down and they are easier to qualify for that conventional loans.

16. I filed Bankruptcy. Can I still get a VA loan?

It depends. You are still eligible for a VA loan. You must be at least one year out of Chapter 13
bankruptcy or two years out of Chapter 7. You must have no late payments in the year leading up
applying for the VA loan.

17. How much can I borrow with a VA home loan?

You may be borrow to bottow enough to cover 100% of your home purchase and could qualify for up to
a $417,000 loan in el Paso County and Colorado Springs. In Alaska and Hawaii, the loan guarantee
limit is $625,000. On a refinance you can borrow up to 90% of the appraised value of your home.

18. Can I use a VA loan to Invest in Real Estate?

VA loans may only be used for a home that you intend to live in as your primary residence.

19 What is a fixed rate VA loan?

A fixed-rate loan has an interest rate that stays the same. The interest rate at the time the loan is
finalized is the interest rate for the life of the loan.

20. Do I need a down payment with a VA loan in Colorado Springs and El Paso County?

A VA loan covers 100% of the value of a home, so a down payment is not required. However, you have
to pay any closing costs. For purchas home loans, payment in cash is required on all closing costs,
including title search, recording fees, hazard insurance premiums and prepaid taxes. However, the
seller can pay these closing costs for you if negotiated into your purchase contract. Closing costs up to
an amount that equals 6% of the homes value. This is usually more than enough to cover closing costs
so you can move into a home with no money out of pocket. Earnest money is needed when executing
a purchase contract. The earnest money required is specific to the property being purchased and is
listed on the MLS brochure of the property.

21. If I am on active duty, can I get a VA loan?

Yes, if the home will be your permanent residence and you are within 60 days of moving into the property.

22. What is a VA Appraiser?

VA appraisers protect buyers. VA loans are government-backed, so VA appraisers need to make sure
home meet government safety and quality guidelines.

23. Is Timing a Factor?

If you are contemplating buying a home and using VA eligibility. Make contact early and often with your
Realtor and VA approved lender. If you are within 12 months of separating from the military you need to
contact and advise your lender as your income will change when no longer on the military payroll.