In recent years the restructure of lending regulations for conventional mortgages has made it increasingly difficult for home buyers to obtain a home loan, especially with little to no money down. That’s why more and more military service members and veterans have begun using their VA loans than ever before in order to achieve optimal home financing terms.
The Veteran’s Administration offers a variety of loan programs in order to make no-down-payment mortgages easier for veterans and military servicemen and women to obtain. Whether you are a first time home buyer hoping to secure a new mortgage, you have satisfied your prior VA loan obligations and are considering purchasing your next home, or you are interested in refinancing an existing mortgage, chances are there is a VA loan program available to meet your needs.
VA Home Purchase Loans
If you are a veteran or a current military service member who is interested in purchasing your primary residence with little to no money down, a VA home purchase loan might be just what your are looking for. Since 1944, the Veteran’s Administration has guaranteed more than $18 billion in home purchase VA loans, and a massive percentage of those required absolutely no down payment.
VA Cash-Out Refinance Loans
If you are a homeowner who is interested on obtaining some extra cash to cover things like tuition, unexpected expenses or home improvements, a cash-out refinance loan may be an excellent solution. Veteran homeowners who select a cash-out refinance can obtain a new mortgage for up to 90% of the home’s value. Any existing loan is paid in full with the proceeds from the new mortgage.
VA Streamline Refinance Loans
Also known as IRRRL, streamline refinance VA loans are specifically designed for veteran homeowners who are interested in obtaining a lower interest rate on their mortgage but have used their original VA home loan benefits. The convenient “NO COST” option offered by streamline refinance loans enables the veteran or service member to refinance their existing mortgage without any out of pocket expense. The loan cost can either be paid by the lender in exchange for a slightly higher loan rate, or they can be added into the total loan amount.
Benefits of Choosing VA Loans
In addition to being able to obtain a home loan without the hassle of out of pocket expenses, there are a variety of other benefits of choosing a VA loan as well.
- No private mortgage insurance required
- Funding fee can be added into the loan
- Closing costs are regulated
- Assumable to qualified buyers
- No prepayment penalties
- Benefits are reusable
- Less strict credit requirements