Colorado Springs VA Home Loan Options
VA Loan Refinancing:
VA Streamline (IRRRL) Refinance:
A VA Streamline refinance, or Interest Rate Reduction Refinance Loan (IRRRL), is typically going to be the best refinance option for those who already have a VA Loan. Refinancing allows a homeowner to change to a lower interest rate mortgage loan, and often lower their monthly payment. With a Streamline refinance or IRRRL the process is rather easy to complete as the borrower is moving from one VA Loan product to another.
It is important to know that IRRL rates change frequently so you will want to talk to your loan specialist before and during the process so you can be aware of the current interest rates.
One of the biggest benefits of a IRRL is that there is no out of pocket costs as the homeowner can choose to roll the closing costs into their loan balance.
To qualify for a VA Streamline refinance, the home or property must currently be financed through a VA Loan.
VA Cash-Out Refinance:
As with a standard cash-out refinance, the homeowner is able to turn the equity in their home into cash. When your home is worth more than the outstanding loan balance, your equity can be taken out via a cash-out refinance, not to be confused with a home-equity loan which creates a second loan on your home. A VA cash-out refinance allows a qualified veteran to refinance their current conventional or VA home loan into a new lower rate VA Loan.
A VA cash-out refinance does not mean that the homeowner has to take out cash with this refinance option. A homeowner can choose this type of refinance option to take advantage of converting a conventional loan and lower interest rates, or to get out of adjustable rate mortgage loans.
To be eligible, lenders will look for the homeowner be a qualified veteran, to have a minimum credit score, and have more equity built up in there home than the outstanding loan amount.
VA Loan Options :
VA First Time Home Buyer:
Qualified veterans are offered an excellent homebuying finance option via the VA Home Loan. With no down payment required, and less stringent qualifications like credit score, an VA Loan allows first time homebuyers an option to start their journey to home ownership.
Since VA Loans do not require additional expenses like private loan insurance that you would find with a conventional loan, the overall monthly payment is typically lower for the homebuyer.
VA Jumbo Loans:
With a VA jumbo loan, the homebuyer can shop for homes in higher cost areas, perfect for large metropolitan areas. One of the biggest highlights of a VA jumbo loan, is the standard $0 down, giving you that much more buying power.
Typical VA jumbo loans are considered home loans that exceed the county specific VA loan limit, so buyers will want to know the loan limits are the county they are looking to purchase in.
The military service requirements remain the same as a standard VA loan, and typically the credit score should be at a minimum of 660 but can vary between lenders. As with most VA loans, the overall requirements are more lenient than with a conventional home loan.