Veterans Affairs Loans
Your VA benefits can be used to help purchase a new home or refinance your existing mortgage.
Let Your VA Benefits Help You Realize Your Dream Of Buying a Home
The U.S. Department of Veterans Affairs created a program to help active service members, veterans, and eligible surviving spouses become homeowners.
The Veterans Administration offers a home loan guaranty benefit and other housing-related programs to help qualified veterans or their eligible surviving spouses buy, build, repair, retain or adapt a home for personal occupancy. VA loans offer up to 100% financing on the value of a home. VA loan recipients do not have to be first-time home buyers. Also, they may reuse the benefits and assign the loan to another qualifying person. – Investopedia
VA Loans can help with several benefits, including:
- Help with purchasing a home at a competitive interest rate often without requiring a downpayment or private mortgage insurance.
- Cash Out Refinance loans, which allow you to take cash out of your home equity to help with paying off debt, funding school, or making home improvements.
- Refinancing your VA loan at a lower interest rate.
- Help for Native American veterans to finance the purchase of a home on Federal Trust Land or lower the interest rate on an existing VA loan.
VA Loan Eligibility
In order to be eligible for a VA loan, veterans must first obtain a valid Certificate of Eligibility (COE), which is based on your length of service, duty status, and character of service.
VA Loan Programs
If you are current military service member and are relocating within the next few years, an adjustable-rate mortgage might work for you. And adjustable-rate mortgage often offers lower introductory interest rates that changes after an initial fixed-rate period. Depending on the current interest rates at the time that the fixed-rate term ends, your interest rate, and monthly payment, may increase or decrease.
A fixed-rate mortgage locks in an interest rate for a certain period of time. This protects you from fluctuating interest rates and monthly mortgage payments throughout the life of the loan. Fixed-rate loans often come in 10-year, 15-year, or 30-year loans. Keep in mind that insurance payment and property tax amounts may rise during the life of your loan, possibly increasing your monthly payment. However, your mortgage payment amount will remain the same throughout the loan term. If you’re planning to stay in your house for a long period of time, a fixed-rate mortgage might be the right option for you.
A cash-out refinance allows you to take cash out of your home equity to help pay for major expenses such as home repairs or improvements, college tuition, or credit card debt. This refinance option replaces your current mortgage with a new loan with a higher amount than you owed. Veterans and active military are allowed to refinance a non-VA loan with a cash-out VA loan.
Interest Rate Reduction Refinance Loan
An interest rate reduction refinance loan (IRRRL) allows you to refinance your existing VA loan with the intent of lowering your interest rate and your monthly payments. You can also refinance an adjustable-rate loan into a fixed-rate loan using an IRRRL. Utilizing this type of loan will not allow you to receive cash from the loan proceeds