Colorado Springs homes Posts

With Colorado Springs houses County, Colorado being home to Fort Carson, Peterson Air Force Base, Schriever Air Force Base, Cheyenne Mountain, the Colorado Springs Air Force Academy, and countless military contractors who heavily recruit retired military personnel, VA Mortgage Loans are not only a common loan type, but local market driver. Because of the demand for these types of mortgages in Colorado Springs, we at Pink Realty want to answer the Top 10 questions that military and retired military home buyers have about VA mortgages.

Question 1: What is the VA Mortgage Lending Limit?

According to our in-house lending specialist, Tammy, the VA mortgage lending limit is $417,000 in Colorado Springs. While this limit is set for most areas of the country, the VA lending limit can be as high as $1M for other parts of the country that have higher average home prices, such as Washington DC, California and Hawaii. Additionally, while the VA sets their limit, this does NOT limit the veteran to a house priced at $417K or less. For example, let’s say you want to purchase a home priced at $500K. That’s $83K higher than the VA guarantee limit of $417K. If your VA eligibility is $417K and you qualify for the higher loan amount from your lender, you can purchase the $500K home with a down payment of 25% of the $83K difference ($20,750) and your lender will lend you the other 75% of the difference or $62,250. Therefore, your loan amount would be $417K, plus $62,250 or $479,250.00. As long as you qualify for the higher loan amount and have the cash for the down payment, you can buy that $500K house.

Question 2: What is the VA Funding Fee?

The VA charges a VA Funding fee of 2.15% of the mortgage amount to first-time users who do not put pay a down payment on the home. This fee covers the cost to operate the VA loan program. After the first VA loan, the funding fee is increased to 3.3% of the mortgage amount if the veteran does not pay a down payment. This fee does not have to be paid by the veteran out of pocket. It can be financed into the loan along with other closing costs, so there is no down payment required and no out of pocket expenses to the veteran.

Question 3: Can the VA Funding Fee be waived?

Did you know if you are discharged from service with at least a 10% disabled status you can get the VA funding fee waived? That’s right! Nearly 70% of the veterans today are discharged with at least a 10% disabled status. This not only gets the veteran a tax free check every month, but also allows them to purchase a home without having to pay the standard VA funding fee!

Question 4: Is my eligibility lost if I file Bankruptcy?

Filing Bankruptcy does affect your VA eligibility, but depending on what type of Bankruptcy you file, your VA eligibility is affected differently. If the veteran files Chapter 7 Bankruptcy, which is a total liquidation of their debts, the veteran must wait 2 years before they can qualify for another VA loan. If, however, the applicant files Chapter 13, which is a re-organization of their debts, the VA will consider lending to the applicant for another home purchase in as little as 12 months into the bankruptcy if the applicant receives permission from the bankruptcy court and can show they have paid 12 months of payments on the bankruptcy in a timely manner.

Question 5: Is my eligibility lost if I lose my house in foreclosure or sell my home as a short sale?

There have been a lot of foreclosures in Colorado Springs in the past couple so Pink Realty agents get this question quite a bit. Whether a veteran looses their home in a foreclosure or sells their home as a short sale, if the VA suffers a loss, they do not forgive or forget the loss. However, this does not mean the veteran loses their eligibility. The amount the VA loses on your home, whether via a foreclosure or short sale, gets subtracted from your total eligibility. What this means is if you were elegible for a VA guarantee of $200K and the VA lost $100K on your loan, your VA eligibility is reduced by the amount of the loss and is now $100K. If the deficiency is repaid to the VA, the veteran’s eligibility is fully restored.

Question 6: Can I use my VA eligibility more than once?

Yes! Veterans can use their VA eligibility as many times as they want but only on one house at a time. To use the eligibility again, the veteran must pay off the previous loan and provide proof to the VA, and your Pink Realty agent can help you with this. When a veteran has a VA loan on their home and they sell it, they must notify the VA that the home has sold and the mortgage has been paid in full. This restores the veteran’s VA eligibility so that it can be used again to buy their next home. If the veteran allows his VA mortgage to be assumed by another eligible veteran (and this is never a good idea) and the assuming veteran is not willing to substitute his own VA eligibility to the original veteran, the original veteran’s eligibility is reduced by the amount of the loan that was assumed. Once the assuming veteran pays the loan in full, the original veteran’s VA eligibility is restored.

Question 7: What kind of properties can I buy?

The VA does not lend on any property that is not intended to be used as the applicant’s primary residence. Should an applicant want to purchase a duplex, tri-plex or any 2 – 4 unit building as an investment, the VA will grant a VA mortgage loan as long as the applicant intends to occupy one of the units as their primary residence. The VA also requires that the home be in move-in and livable condition at the time the loan is made. The VA does not lend on uninhabitable properties, raw land, commercial property or any other property that will not be considered the applicants primary residence.

Question 8: Can I buy more than one property at a time?

The VA only issues mortgages on the veteran’s primary residence. This does not keep the veteran from being able to purchase other properties, though. If the veteran wants to purchase another property, such as an investment property, and they qualify for both mortgages, the veteran can secure other, non-VA financing to purchase other property. If you would like to discuss the other loan types that may be available to you, our in-house Pink Realty lender would be happy to help you. Just call our office at 719-393-7465 (Pink) and ask to speak to the lender.

Question 9: Who can apply for a VA loan?

VA loans are for military personnel and veterans. If a military applicant wants to include another person on their VA mortgage, the only acceptable co-applicants are the applicant’s spouse or another VA eligible applicant. Family members, friends, relatives and/or ‘significant others’ can’t be on a VA Loan with the applicant. If there are
credit issues with an applicant’s spouse, the applicant does not have to include the spouse on the application.
However, the debts of the spouse must be included so the VA has knowledge of the total liability at stake. Sometimes, the spouse’s total debt causes the debt to asset ratio to be too high to qualify for the loan. In this case, if the spouse works and has been at their job at least 2 years, the spouse’s income, up to the total monthly debt liability, can be included on the application to offset the spouse’s debt. This generally allows the debt to asset ratio to fall back in line for approval of the loan.

Question 10: What does my Credit Score have to be?

At time this article was written, the VA looks for scores of 620 or higher. (Please feel free to call Pink Realty at any to check to see if loan guidelines have changed. We are always here to help.) If the applicant’s score is a little lower than this, Pink Realty lender will work closely with the applicant to see what can be done to raise their score, and many times we can help a borderline applicant buy a new Colorado Springs home. The first item addressed is whether or not the credit report is accurate. More than 80% of the credit reports run today contain errors. Just removing the errors alone may raise the applicants score. Improving their credit score may also mean paying down a credit card balance so the outstanding balance is 50% less than the credit limit on the account or it may be as simple as paying a few low balance accounts off. Sometimes this is all that’s needed to bring the credit score up to the approval score limit. Remember that your credit score is very specific to you, and we would be happy to evaluate your situation for free any time. Just call our office at 719-393-7465 (Pink).

We hope this article answered some of your questions about VA mortgage loans so when you are in the market for a VA loan, you are ready. For more information on VA home loans, you can call a Pink Realty agent or lender at any time.Please stay tuned for more informative articles. Stop by the website regularly for new and updated information.

Everyone wants to be a homeowner and live the American Dream and today’s real estate market provides some pretty good perks for those looking to buy a home in Colorado Springs. However, before you buy, there are some things to consider. Purchasing a home is the most important decision you will make in your lifetime. Therefore, it makes sense to understand what’s important to know before you buy.

As property values have been falling, it’s a great time for home buyers to find good deals on Colorado Springs homes that are for sale whether you are looking for that perfect retail home or want to save a little more money by purchasing a short sale or REO property. While now is the time to take advantage of great pricing, you need to ask yourself if you are ready and willing to make a commitment to stay in the house for a few years. When people buy a home, they anticipate growing equity in their home over time. There was a time, not too long ago, where this happened pretty quickly, however, in today’s market, it takes longer. When you add in the transaction costs involved in buying and selling a home, you could find yourself losing money on your home if you try to sell too quickly. So, first things first – can you can make the commitment to stay in the home for a few years?

Some other questions you should answer before you and your Pink Realty agent go out to find your dream home:

• When do you want buy? Depending on the time of year you begin house hunting, the market may be slower. For instance, if you are buying in the colder seasons (i.e., through the holidays), sellers may be more willing to offer incentives or be more flexible on price.

• If you aren’t in a hurry to buy, you might want to consider buying a home that is being sold as a short sale. The short sale process does take longer than a typical retail sale, but if you have the time to work through the process, you will have the opportunity to get more house for your dollar if you buy a short sale.

• What part of town and what neighborhoods do you want to live in? Colorado Springs neighborhoods that have better schools tend to have higher values. Even if you don’t have school-aged children, it’s an important aspect to consider when it does come time to sell because resale values will be higher.
• Be sure the neighborhood you choose is one you can commit to staying in for a while, so do some research on different Colorado Springs neighborhoods to find out about property values and if houses are selling close to their asking prices. Find out about the attributes that are important to you such as schools, shopping, recreation, homeowners associations and dues, crime rates, etc. Remember that your Pink Realty agent can help you find any of this information that is of interest to you. Just call us at 719-393-7465 (Pink) to get started.

• How many houses in the neighborhood are for sale and how fast are they selling? Talk to neighbors to see how they like the neighborhood. If they are selling, ask why they are selling. Again, consider your lifestyle and make sure the neighborhood will work for you.

Another very important aspect of buying a house is financing. The average person needs to obtain a mortgage in order to purchase a home, and getting a mortgage these days isn’t as easy as it used to be! The human element of issuing credit has been removed from credit transactions, so the approval or denial of a mortgage is determined by your credit score. Your credit score is determined by the information that is in your credit report. Therefore, you need to know what’s in your credit report and what your credit score is. Knowing this information helps in several ways. If your credit score falls short of the approval requirements, you will have an idea of what you’ll need to do to raise your score. Again, if you need help with this, just call Pink Realty at 719-393-7465 (Pink) and ask to speak to our loan specialist and she will be happy to help you with any loan or credit issues or questions you may have. If you have great credit and a high score, you will have some negotiating power when it comes time to determine interest rates and points. You are entitled to free copies of your credit report annually from all three credit bureau reporting agencies (Equifax, Experian and TransUnion). Actually obtaining your credit score generally costs a fee, however, you can have a lender pull your credit report and tell you your credit score for free. Most conventional lenders ideally look for a credit score of 720 or higher. In today’s economy, there aren’t many people with scores that high. If you don’t qualify for a conventional loan, you can apply for an FHA or VA loan. While FHA has their own credit score requirement of 580 or higher, many lenders add their own requirements to FHA financing.

If you find your credit score doesn’t qualify you for a mortgage, you will need to do some homework to get your scores up. We have posted previous articles on credit reports and repairing your credit. You can review these articles to learn about how you can repair your credit or just call the Pink Realty office at 719-393-7465 (Pink) and ask to speak to our lender. She can definitely help.

If your credit is strong enough to qualify you for a mortgage, the next thing to figure out is how much of a mortgage can you realistically afford. An industry rule of thumb says you can afford a mortgage that is 2-1/2 times your annual salary, but this rule of thumb doesn’t take into consideration your monthly debt and living expenses. To better determine what you can afford, you can use an online mortgage calculator. These calculators take into consideration your income and your monthly debt payments to give you a more realistic mortgage amount for your budget.

Once you know the amount of the mortgage you can afford, the next thing to determine is how much cash you have available for a down payment. Most conventional loans require 20% of the purchase price as a down payment to avoid private mortgage insurance. If you don’t have 20%, you can put as little as 5% down if you agree to have private mortgage insurance added to your loan. If you qualify for FHA financing, you may only have to put down 3-1/2% of the purchase price. Depending on how much cash you have to put down will also determine how much of a mortgage you can afford. As you can see, it’s important to know if you can obtain a mortgage, how much of a mortgage you can afford and how much you can afford for a down payment. Knowing the answers will help you determine what price range you and your Pink Realty agent need to be looking in for your new home.

If you are confident you will qualify for a mortgage, it’s time to have contact your Pink Realty agent and start looking for your dream home. You want to pick a lender and a real estate agent who will work for you and take your interests to heart.

Once you have been approved for your mortgage, you don’t want to do anything to change your credit report or your financial situation. Therefore, avoid doing any of the following:

• Don’t apply for new credit. Inquiries affect your score and will have to be explained to your lender.

• Don’t incur more debt. This means don’t increase your credit card balances or credit lines and don’t take out any new loans. It will affect negatively affect your debt to asset ratio.

• Keep accounts current and make payments on time.

• Don’t pay off collections or charge off accounts, don’t close any credit card accounts and don’t consolidate debt into one or two credit cards.

• Don’t make any large deposits other than your standard payroll as all deposits will have to be explained.

• Don’t make any large cash purchases as it will lower the amount of verified funds in your bank accounts.

• Don’t change jobs without talking with your loan officer first.

OK, now that you know your credit is good, you know how much cash you have to put down, you are working with a Pink Realty agent and you know what neighborhoods you are interested in living in. Congratulations! You have just crossed the first big hurdle.

Now it’s time to start looking for the house that’s right for you. While you can comb the internet and newspaper ads to find houses yourself, it can easily become overwhelming with the large inventory of homes that are on the market. To save you time and miles of legwork, your Pink Realty agent will do all of this work for you. They can narrow houses down based on your interests and your budget and when it comes time to making an offer, signing contracts, disclosures, and addendums, they are there to help you understand what it all means.

Here are some tips that will make things easier as you and your Pink Realty agent look for your Colorado Springs dream home.

• Make a list of things the house must have and a list of what you would like to have. Prioritize your list and separate the ‘have-to-have’ from the ‘want-to-have’. Don’t be too restrictive on your search criteria. For instance, include a price range that is 10% above and 10% below your budget.

• Bring a notebook and camera with you to help you remember the details of each house. Take pictures and take notes about each because after you have seen several, you can easily forget details or get the details and houses mixed up!

• With each house you see, keep an open mind. Don’t reject a house just because it was short a few features on your wish list or was a bit out of your price range. Remember, the asking price is simply a starting point. You will have an opportunity to negotiate once you are ready to make an offer.

Once you have found the home you want, work with your Pink Realty agent to determine what your offer should be. Depending on the market and the area, you may have to act quickly. Your agent should have a good idea about what homes in that neighborhood are selling for and to know how close your original offer should be to the asking price. Additionally, you should discuss what terms you would like in the contract such as how quickly you want to close, what stays with the house, how much earnest money you have to put down, and so on.

When you have settled on a home and are in the process of negotiating a final price, you will have the contract contingent up the results of a home inspection. Have a licensed inspector inspect the home to see if there are any major repair surprises. Home inspects can check the heating, plumbing, electric, roof, etc. to see if there might be some foreseeable issues in the future. You may want to ask for a home warranty as well. There are all things your Pink Realty can help you will.

Buying a beautiful Colorado Springs homes is no easy task, but it is a very rewarding experience when you know what to expect and you are working with the professionals at Pink Realty who have your best interests at heart. We have experienced buyer’s agents who will work with you to find the home of your dreams. You can also use our professional in-house lender that will get you an affordable mortgage and help you with credit repair if you need help with that. Whether it’s a retail property or a short sale, they are professionals, knowledgeable and experienced. Additionally, we have an outstanding short sale team that not only has a very high success rate but also takes great pride in getting the deals closed in a timely manner. We are the ones to call!

Colorado Springs is one of the best places to live in the country for a variety of reasons. So, it’s no wonder you have decided to be one of the many people who move there each year. If you have decided against purchasing one of the beautiful Colorado Springs homes for fear of the real estate market then you are not alone. Even though Colorado Springs has done much better than some other areas of the country, it still leaves a lot to be worried about. Especially if you may not end up living there long enough to reap the rewards of future appreciation in home values. In that case, renting is an option that offers the freedom of not being tied down to a mortgage.

Colorado Springs has homes to suit a range of tastes. There are apartments, single family homes, condominiums, town houses and even farms. In any case, you should know what to expect from a legal stand point when going through a rental agreement.

A Colorado home rental agreement is pretty much standard. However, as the tenant, you have to ensure that there are particular areas adequately covered in the rental agreement. Issues such as term of lease, rental amount as well as the mode and schedule of payment, responsibilities as it relates to the payments of utility, repair responsibilities and maintenance costs, pets, contractual responsibilities of tenant and landlord and the subtenant policy.

Keen attention should be made to the section of the agreement detailing the security deposit. Colorado state law does not specify a lower or upper limit so keep this in mind in order not to get scammed. Additionally, the deposit can be used by the landlord specifically for cleaning and repairs resulting from damages made by the inhabitants, separate and apart from regular wear and tear. The law stipulates that the landlord has to return a portion or the whole deposit within a thirty day period following the end of the lease agreement. If you have any questions relating to any areas of the contract, do not hesitate to seek advice from a local real estate lawyer.

One area of the Colorado rental law that is very specific is the matter regarding peaceful property enjoyment. It states that the landlord is prohibited from entering the property without given permission from the tenant while the lease is still in effect. The two exceptions are if the landlord has emergency repairs to be made or if the landlord is put in the position where he/she has to demand rent.

Another key area to note is the eviction law. Eviction is only possible for three reasons including termination of the lease agreement, nonpayment of rent and breach of contract on the part of the tenant. The landlord is obligated to get a court order for eviction without which, he is not able to coerce the tenant to leave. The landlord is also legally required to give the tenant written notice advising them about the filing of the eviction case. The notice enables both parties the opportunity to resolve any issues or for the tenant to make preparations for leaving.

Understanding Colorado Springs homes rental law is crucial if you want to avoid scams and make the most out of your tenancy. It’s in your best interest to do some research before and after signing a lease.