A Guide to VA Loans

Military

Image source: Shutterstock

VA loans provide a path toward homeownership for active service and veteran personnel and their families. The following serves as a guide to understanding what they are, who they are available to, and what types of loans are available to them.

VA loans can be confusing, so talk with your Windermere agent as you prepare to discuss your options with your lender. “Even people in the military have misconceptions about (VA loans),” said Windermere agent and Veteran Gervon Simon in a recent episode of our “Ask An Agent” series.

 

What are VA Loans?

The VA loan program was established by the United States Department of Veterans Affairs (VA) to help active service members, veterans, and surviving spouses become homeowners. VA loans are backed by the federal government yet provided by private lenders such as banks and mortgage companies. VA loans can be used to buy, build, or improve a home, or to refinance a current home loan.

 

How do VA Loans work?

VA loans have appealing characteristics for homeowners including lower-than-average mortgage rates, zero down payment on the purchase price, no-prepayment penalties, limited closing costs, and no Private Mortgage Insurance (PMI). They are typically easier to qualify for than standard home loans. With VA-backed loans, they guarantee a portion of the loan from a private lender. This means less risk for the lender, often resulting in more favorable terms for the homeowner. You do not have to be a first-time homebuyer to receive a VA loan. VA loan limits vary by county, so be sure to work with your Windermere agent to determine the limit in your area.

 

Which loans are available?

 

Purchase Loan

  • VA-backed purchase loans may be used to buy a single-family home, condo, manufactured home, or land. They also may be used to make energy-efficient changes to your home. Additionally, you can use a purchase loan to build a new home.
  • They offer no down payment, as long as the home’s sales price does not exceed its appraised value.
  • There is no need for PMI or mortgage insurance premiums (MIP).

 

Native American Direct Loan (NADL)

  • For Veterans who are either Native American or have a Native American spouse, the NADL can help to buy, build, or improve a home on federal trust land.
  • Beyond basic requirements of eligibility and credit standards, to be considered for the loan your tribal government must have an agreement—or Memorandum of Understanding (MOU)—with the VA. For more information on MOUs, visit this page: MOU Info

 

Interest Rate Reduction Refinance Loan (IRRRL)

  • The IRRRL is a refinancing tool for those with VA-backed home loans that are looking to reduce their monthly mortgage payments.
  • The IRRRL replaces a current loan, giving homeowners the ability to stabilize their repayment plans.
  • A VA funding fee may be required. Loan interest and closing fees will be charged by your lender but including these costs in your IRRRL will help you avoid paying the costs upfront.

 

Cash-out refinance loan:

  • The cash-out refinance loan allows homeowners to take cash out of their home equity or refinance a non-VA loan into a VA-backed loan.
  • In addition to your Certificate of Eligibility (COE), you’ll need to provide additional federal income tax information to your lender.
  • A home appraisal will be ordered by your lender. Similar to an IRRRL, a VA funding fee may be charged at closing. Follow their closing process and pay all closing costs.

 

For more information on the different types of VA Loans, eligibility, and more, visit the Veterans Affairs website here: VA Loans

The post A Guide to VA Loans appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

A Guide to VA Loans

Military

Image source: Shutterstock

VA loans provide a path toward homeownership for active service and veteran personnel and their families. The following serves as a guide to understanding what they are, who they are available to, and what types of loans are available to them.

VA loans can be confusing, so talk with your Windermere agent as you prepare to discuss your options with your lender. “Even people in the military have misconceptions about (VA loans),” said Windermere agent and Veteran Gervon Simon in a recent episode of our “Ask An Agent” series.

 

What are VA Loans?

The VA loan program was established by the United States Department of Veterans Affairs (VA) to help active service members, veterans, and surviving spouses become homeowners. VA loans are backed by the federal government yet provided by private lenders such as banks and mortgage companies. VA loans can be used to buy, build, or improve a home, or to refinance a current home loan.

 

How do VA Loans work?

VA loans have appealing characteristics for homeowners including lower-than-average mortgage rates, zero down payment on the purchase price, no-prepayment penalties, limited closing costs, and no Private Mortgage Insurance (PMI). They are typically easier to qualify for than standard home loans. With VA-backed loans, they guarantee a portion of the loan from a private lender. This means less risk for the lender, often resulting in more favorable terms for the homeowner. You do not have to be a first-time homebuyer to receive a VA loan. VA loan limits vary by county, so be sure to work with your Windermere agent to determine the limit in your area.

 

Which loans are available?

 

Purchase Loan

  • VA-backed purchase loans may be used to buy a single-family home, condo, manufactured home, or land. They also may be used to make energy-efficient changes to your home. Additionally, you can use a purchase loan to build a new home.
  • They offer no down payment, as long as the home’s sales price does not exceed its appraised value.
  • There is no need for PMI or mortgage insurance premiums (MIP).

 

Native American Direct Loan (NADL)

  • For Veterans who are either Native American or have a Native American spouse, the NADL can help to buy, build, or improve a home on federal trust land.
  • Beyond basic requirements of eligibility and credit standards, to be considered for the loan your tribal government must have an agreement—or Memorandum of Understanding (MOU)—with the VA. For more information on MOUs, visit this page: MOU Info

 

Interest Rate Reduction Refinance Loan (IRRRL)

  • The IRRRL is a refinancing tool for those with VA-backed home loans that are looking to reduce their monthly mortgage payments.
  • The IRRRL replaces a current loan, giving homeowners the ability to stabilize their repayment plans.
  • A VA funding fee may be required. Loan interest and closing fees will be charged by your lender but including these costs in your IRRRL will help you avoid paying the costs upfront.

 

Cash-out refinance loan:

  • The cash-out refinance loan allows homeowners to take cash out of their home equity or refinance a non-VA loan into a VA-backed loan.
  • In addition to your Certificate of Eligibility (COE), you’ll need to provide additional federal income tax information to your lender.
  • A home appraisal will be ordered by your lender. Similar to an IRRRL, a VA funding fee may be charged at closing. Follow their closing process and pay all closing costs.

 

For more information on the different types of VA Loans, eligibility, and more, visit the Veterans Affairs website here: VA Loans

The post A Guide to VA Loans appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

What ‘s My Home Worth? The Downside to Home Valuation Tools

What’s your home worth?

 

It is a seemingly simple question. However, discovering the worth of your home is more complicated than it might seem. Sites like Zillow, Redfin, Eppraisal, and others have built-in home valuation tools that make it seem easy, but how accurate are they? And if you get three different answers, which one do you believe? Online valuation tools have become a pivotal part of the home buying and selling process, but they’ve proven to be highly unreliable in certain instances. What these valuation tools have made clear is that real estate agents are as vital to the process of pricing a home as they ever were—and maybe even more so now.

 

Every online valuation tool has its limitations. Most are readily acknowledged by their providers, such as “Zestimate” from Zillow, which clearly states that it offers a median error rate of 4.5%. That may not sound like a lot, but keep in mind that 4.5% amounts to a difference of about $31,500 for a $700,000 home. For Redfin and Trulia, there are similar variances. When you dig deeper into these valuation tools, it’s no wonder that there are discrepancies. They rely on a range of different sources for information, some more reliable than others.

 

Redfin’s tool pulls information directly from multiple listing services (MLSs) across the country. Others negotiate limited data-sharing deals with those same services, relying on public and homeowners’ records alike. This can lead to gaps in coverage. These tools can serve as helpful pieces of the puzzle when buying or selling a home, but the acknowledged error rate is a reminder of how dangerous a heavy reliance on them can be.

 

Nothing compares to the level of detail and knowledge a professional real estate agent offers when pricing a home. An algorithm can’t possibly know about the unique characteristics of neither a home nor its neighborhood. Curious about what improvements you can make to get top dollar or how buyer behaviors are shaping the market? They cannot provide an answer there, either. That can only be delivered by a trusted professional whose number one priority is getting you the best price in a time frame that meets your needs.

 

If you’re curious about your home’s value, Windermere offers a tool that provides a series of evaluations on your property and the surrounding market. And once you’re ready, we’re happy to connect you with a Windermere agent who can clarify this information and perform a Comparative Market Analysis to get an even more accurate estimate of what your home could fetch in today’s market.

The post What ‘s My Home Worth? The Downside to Home Valuation Tools appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.

Wonderful Home with Permanent Foundation in the Sunflower Community

This 3 bedroom home at 4529 Quest Dr features tons of natural light with extra windows and Velux skylight. Pride of ownership abounds with designer colors and a newer roof and water heater. The eat-in kitchen has cherry flooring, stainless-steel appliances and gas range. Enjoy the private backyard with professional landscaping and flowering plants. Sunflower has a clubhouse, hot tub, pickleball courts, putting green & more.  Call Aaron Pearson for your private showing at 970-646-3035 for more information or click the link below for more details.

http://windermerenoco.com/listing/78389284

The post Wonderful Home with Permanent Foundation in the Sunflower Community appeared first on Fort Collins Real Estate | Fort Collins Homes for Sale & Property Search.