Welcome to the North Star Team blog at Navigate Realty! We’re excited to share some important insights about VA loans for our veterans, active military, and their families. I’m Ann Wymore, owner of Navigate Realty, and today, I had the privilege of sitting down with Bryce Waite from Source Mortgage Group. Bryce is not only an expert on VA loans but also a veteran himself, deeply committed to helping those who’ve served our country.

In this blog, we’ll break down some key points about VA loans that every veteran and military family should know, answering some of the most common questions. Whether you’re thinking of buying your first home or upgrading, we’re here to guide you through the process with ease.

What Credit Score Do You Need for a VA Loan?

Many veterans wonder what credit score is required to qualify for a VA loan. According to Bryce, the VA has more flexible credit score requirements than most loan programs.

“The minimum credit score to qualify for a VA loan is 500,” Bryce explained. “However, most lenders prefer a score of 600 or higher for approval, especially depending on your financial situation, such as debt-to-income ratio.”

This flexibility is one of the many reasons VA loans are a fantastic option for veterans who might have less-than-perfect credit but still want to achieve homeownership.

Are There Any Price Limits for VA Loans?

A common misconception is that VA loans have a cap on the amount you can borrow. Fortunately, that’s not the case.

“There are no price limits when it comes to VA loans,” Bryce confirmed. “As long as your household income qualifies, you can purchase a home of any value, whether it’s $300,000 or $3 million.”

This is a significant advantage for veterans and their families, as it allows them the freedom to choose homes in a wide range of price points, all while enjoying the benefits of a VA loan.

Is a VA Loan Truly Zero Down?

Yes, one of the biggest advantages of a VA loan is the zero down payment option. But while the loan itself requires no down payment, there are still costs to consider.

“VA loans come with closing costs, typically between $6,000 to $10,000,” Bryce noted. “However, with the help of a skilled real estate agent, you can negotiate what's called seller concessions, where the seller agrees to cover your closing costs.”

This means that, in some cases, veterans can purchase a home without having to bring any money to the table, making the process truly zero out of pocket.

Don’t Forget Earnest Money!

While VA loans offer zero down payment and potentially no out-of-pocket costs for closing, there’s still one thing to plan for: earnest money.

As Ann shared, “Earnest money is typically around 1% of the purchase price and acts like a security deposit to show the seller you're serious about buying the home.”

The great news is that many veterans may receive this earnest money back at closing, especially if seller concessions cover all other costs. Some buyers even walk away from the closing table with a check!

Why VA Loans are a Game-Changer

VA loans offer veterans a unique set of benefits that can’t be matched by traditional loan programs. Between the flexibility of credit score requirements, no down payment, and the ability to negotiate for seller-paid closing costs, it’s clear why so many veterans choose VA loans when purchasing a home.

Bryce emphasized, "It’s one of the best loan products out there, and it’s a great way to give back to those who have served our country."

Ready to Start Your VA Loan Journey?

At Navigate Realty, we’re passionate about serving veterans and making homeownership a reality for those who have given so much. If you have any questions about VA loans, whether you’re just getting started or need more information about the process, don’t hesitate to reach out!

Bryce Waite at Source Mortgage Group is a VA loan expert and is here to guide you through the mortgage process. And if you’re ready to begin your home search in the Denver metro area, give me, Ann Wymore, a call at Navigate Realty.

Together, we’re here to make the home-buying process as smooth as possible for our veterans!