Realtor's Guide to VA Loan Transactions in Colorado
VA loans are the best loan product available for qualifying buyers — $0 down, no PMI, competitive rates. But they have unique transaction considerations that every Colorado Realtor should know.
What You'll Learn
- VA Minimum Property Requirements (MPRs)
- VA appraisals (non-assumption of value)
- Seller-paid closing costs (maximum 4% VA concessions)
- VA tidewater and reconsideration of value processes
- VA termite/pest inspection requirements
- Who pays for what in a VA transaction
The Full Explanation
CTC Processing handles high VA loan volume in Colorado — particularly in El Paso County (Fort Carson, Peterson, Schriever). Military buyers trust their LO and Realtor to understand VA nuances. CTC keeps the VA file moving correctly.
Frequently Asked Questions
What are VA Minimum Property Requirements (MPRs)?
MPRs require the property to be safe, sanitary, and structurally sound. The VA appraiser flags issues that must be corrected before closing. Common: roof condition, heating systems, termites, safety hazards.
Who pays for VA-required repairs?
The veteran cannot pay for VA appraiser-required repairs — the seller is expected to. Buyers can pay for negotiated repairs above the VA requirement. This is a common negotiation point in VA transactions.
What is the VA tidewater process?
Tidewater is a VA notification that the appraiser doesn't have sufficient comparables to support the contract price. The lender and Realtor have 48 hours to provide additional comps. If tidewater is ignored, the appraisal is more likely to come in low.