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When it comes to VA loans, Indigo Mortgage in New Mexico are experts. The Indigo team is here to educate buyers on VA or Veteran purchase loans and to help them better understand what these types of loans cover.

The VA or Veterans mortgage loan is the best mortgage loan on the market, as it gives Veterans a great opportunity when purchasing a home. The VA loan provides the Veteran with one hundred percent financing with zero money down, no matter the loan amount, even if they are financing over a million dollars. Although the VA loan covers funding, it does not cover the closing costs. It is common for mortgage lenders to neglect to inform these Veterans that the VA loan does not cover closing costs. The lender needs to advise the borrower that they will most likely need to have their closing costs available at the time of closing. Veterans may also take advantage of the VA loan multiple times, as long as any old loans they have accrued are fully paid. It’s important to remember that the VA mortgage is for a primary home with no second homes or investment properties. Also, if there is a second borrower on the loan, they must be married to the Veteran.

Veterans can also do a split entitlement which means they can use their Veterans benefit on a new home, even though their benefit is tied up on another house. A formula is used to determine the house price they can purchase. If a Veteran is interested in doing a split entitlement, Indigo Mortgage is happy to help! Just give us a call, and our team can do the evaluation. For questions about processing a new VA mortgage loan, reach out to us! The Indigo Mortgage team is here to help borrowers stay informed.

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