The amount of guarantee on the loan depends on the loan amount and whether the veteran used some entitlement previously. With the current maximum guarantee, a veteran who hasn't previously used the benefit may be able to obtain a Colorado VA loan up to $417,000 or more depending on the borrower's income level and the appraised value of the property, etc. The local VA office can provide more details on guarantee and entitlement amounts.

VA home loan programs make home ownership much easier, particularly for first time home buyers.

The benefits of a Colorado VA Loan are listed below:

• 100% Financing  -  No Down Payment
• More lenient credit guidelines than conventional loans. VA lenders have implemented a 620 minimum credit requirement. 
• Qualifying income ratios are higher than any other loan programs, which means that a veteran can usually obtain a higher loan amount.
• VA underwriting is more understanding of individuals and families who have had to file bankruptcy due to involuntary circumstances.
• The VA program allows you streamline your mortgage.

Colorado VA Loan Guarantee

VA will guarantee up to 50 percent of a home loan up to $45,000. For loans between $45,000 and $144,000, the minimum guarantee amount is $22,500, with a maximum guarantee, of up to 40 percent of the loan up to $36,000, subject to the amount of entitlement a veteran has available. For loans of more than $144,000 made for the purchase or construction of a home or to purchase a residential unit in a condominium or to refinance an existing VA guaranteed loan for interest rate reduction, the maximum guaranty is 25 percent up to $50,750.

You may generally borrow up to the reasonable value of the property or the purchase price, whichever is less, plus the funding fee, if required.

Colorado VA Eligibility

Veterans who served on active duty and were discharged under conditions other than dishonorable, during World War II and later periods are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days service. Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16, 1981, must in most cases have served at least 2 years.

Persian Gulf Conflict. Basically, reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were discharged honorably are eligible. VA regional office personnel may assist with eligibility questions.

Members of the Selected Reserve, including National Guard, who are not otherwise eligible and who have completed 6 years of service and have been honorably discharged or have completed 6 years of service and are still serving may be eligible. Contact the local VA office to find out what is needed to establish eligibility. Reservists will pay a slightly higher funding fee than regular veterans. (See paragraph entitled "Costs of Obtaining a Colorado VA Loan").

To obtain a VA loan, the law requires that:

• The applicant must be an eligible veteran who has available entitlement.
• The loan must be for an eligible purpose.
• The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after closing the loan.
• The veteran must be a satisfactory credit risk.
• The income of the veteran and spouse, if any, must be shown to be stable and sufficient to meet the mortgage payments, cover the costs of owning a home, take care of other obligations and expenses, and have enough left over for family support.