There is Life After Foreclosure for VA Loans.

VAReUseYou can obtain another VA loan after you have experienced a short sale, foreclosure or deed-in lieu foreclosure with an existing VA loan. But there is no guarantee…you must determine how much (if any) entitlement you have left previous post to learn and meet the necessary salary and credit qualifications. Remember that your credit score will be “dinged” for having undergone a short sale or foreclosure and it may take time to rebuild. However, the VA program is one of the most lenient in granting loans to veterans who are applying for a mortgage after a foreclosure.

First of all, you need to wait 2 years from the time of your foreclosure in order to apply for your new VA loan. Then you must determine your remaining entitlement. The full VA entitlement (the amount the government guarantees the lender) is $417,000, with $36,000 as your primary entitlement and $68,250 as your secondary entitlement. The VA guarantees one quarter of that amount if you should default and does not require you to have mortgage insurance.

Suppose you have $50,000 in unpaid VA loans remaining on your foreclosed property. A VA-approved lender will subtract that $50,000 from $104,250 ($36,000 + 68,250), which is your full entitlement amount. The difference is $54,250. You can then multiply $54,250 by four to calculate how much you may be able to borrow with no money down—a total of $217,000 ($54,250 x 4).

Veterans who want to use their second-tier entitlement must seek a loan amount of at least $144,000. If you are interested in applying for a VA loan, whether it’s your first, or a subsequent one, we at Springs Homes can refer you to a trustworthy lender who is familiar with the process.

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Here's a little secret....You Can Have More Than One VA Loan at a Time.

VA Loan secretMany veterans are not aware that they can qualify for more than one Veterans Administration loan at a time, depending on circumstances. They can take solace in the fact that many lenders are also not aware of this situation.

The VA loan limit for veterans who wish to buy real estate is $417,000. This is the base amount—the limit may be higher in areas where housing prices are more expensive. Here in Colorado’s El Paso and Teller counties, the $417,000 limit applies; in our neighbor to the north, Denver County, it is $425,000. The loan limits are reevaluated every year.

When considering a VA loan, many veterans start by going online at the Veterans Information Portal for their Certificate of Eligibility (COE). If you are applying for your first VA home loan, your entitlement is for a mortgage of $417,000, assuming that you have adequate income and credit to qualify.

VA entitlement has two parts: basic and bonus. If you have not previously applied for a VA loan, your basic entitlement is $36,000—that is the amount the government insures—but is is not necessarily the total amount of the loan for which you are eligible. Lenders will generally loan up to four times your available entitlement without your having to pay a down payment. So if your basic entitlement is $36,00 you are entitled to $144,000 ($36,000 x 4) providing that your income and credit meet the lender’s requirements. Bonus entitlement comprises a loan up to an additional $68,250 x 4 ($273,000). This amount, sometimes referred to as Tier 2 or additional entitlement, is used only for VA loans between $144,000 and the conforming limit of $417,000.

Here are some examples of how veterans can apply for multiple VA loans. If they buy a home for $200,000 and then receive orders to relocate, they are eligible to apply for the remaining $217,000 with 100% financing to purchase a home at their new base. If the home at the new base is $300,000, they can apply for the additional $83,000 if they put down 25% of that amount ($20,750).

If you have a lease in place for your existing home before you move, that amount will be credited to your income you apply for a loan at your new base.

Coming soon: Can you get a VA loan after a foreclosure?

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What You Get: Briargate $295,000 to $315,000

Briargate HomesBriargate is a popular community located in the northern part of Colorado Springs, Colorado. This area is a master planned community and features a wide range amenities. Additionally, this area is close to I-25 and The United States Air Force Academy.

We have looked at the last six months of sales (March 2014-August 2014). In this period we saw a high sale of $915,000 and a low sale of $145,000. The average sales price in the area is $316,756 this makes the median price $305,000.

For this article, we are going to take a look at what you can get $10,000 above and below the median price $295,000 and $315,000. Here is a look at the numbers:

 

 

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Briargate Homes $295,000 to $315,000
39 Number of Sales
3,078 Average Square Footage
4.2 Average Number of Bedrooms
3.5 Average Number of Baths
2.3 Average Garage Size (spots)
8,199 Average Lot Square Footage
$99.22 Average Price Per Square Foot

 

And here are some pictures of what those homes look like.

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"Based on information from the Pikes Peak REALTOR Services Corp. ("RSC"), for the period March 1st. 2014 through August 31st. 2014 .  RSC does not guarantee or is in any way responsible for its accuracy.  Data maintained by RSC may not reflect all real estate activity in the market."

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2014 Market at a Glance

Colorado Springs home prices rose in August 2014 with a month to month decrease of 3.26%, and a year to year increase of 1.53%, making the average sale price $258,398 and the median price $230,000. The number of Colorado Springs homes sold compared to August 2013 has increased 0.54%, with 7,546 units sold year to date. The number of Colorado Springs homes for sale compared to August 2013 has decreased 3.18% with 4,111 units active.  With decreasing inventory (meaning homes for sale), sellers should see a faster home sale!
 

Single Family/Patio

YTD 2013

YTD 2014

+ / -

 Closed Sales

7,641

7,546

-1.24%

 Median Sales Price

$220,000

$230,000

+4.55%

 Months Supply of Inventory

3.84

3.70

-3.70%

 

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Buying a Colorado Springs area house for $250,000

I saw this funny comic on one of the real estate groups I follow on social media. Lots of people were getting some chuckles from it, but it got me thinking. I am fairly certain the average sale price in the greater Colorado Springs area is around $244,000. Can you find the house this couple in the comic is looking for in Colorado Springs....? 

So I went on a hunt for "close to downtown" (I chose what I thought would be 30 minutes or less) houses with 4+ bedrooms, good size lots (.2+ acres) and safe neighborhood (now that could be up for negotiation, but I think in general this is a VERY safe city overall and people should investigate crime if concerned... sexual offenders, violent crimes, etc... weren't not immune to crime, but it's really a great city!).  And here is what I found.... 

currently available - 76

under contract - 82

sold in the past 6 months - 262

Inventory generally starts slowing down here August (school starts) through about February.... so summer months will provide more inventory. While we have a cost of living higher than many parts of the south and midwest, it's nice to know it's pretty reasonable to live here. 

So, here's a little summary of what that $250,000 will cost you monthly... with 3.5% down (FHA minimum), borrowing $241,250 at a 4.166% interest rate and estimated tax, insurance, and mortgage insurance in your payment, you're looking at $1737/month payment. If you are VA and put nothing down, you'd be borrowing $257,875 because you rolled in your VA funding fee) looking at a $1556/month payment. Obviously all of those payments will be lower the more you are able to put down. 

Want to be close to downtown... like walking distance...? Well, that is a little tougher to find, plus you're looking at older homes (be prepared for a bit more maintenance). There is nothing with 4 bedrooms, 2 houses with 3 bedrooms are under contract withing walking distance of downtown. NOW.... add in the Manitou Springs and Old Colorado City areas, plus remove the .2 acre lot requirement and there are 37 houses. 

Okay, I know that was a lot, but there are many things we can do to help tailor a search in the MLS... especially when those large national sites are sometimes out-of-date. Let us know how we can help in your home search! I know from experience this summer, the nice ones under $250,000 disappear quickly or have competing offers.... it's a good price range! 

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