VA loans are specifically designed for veterans and military service members that have served or are currently serving in the military or a related government branch of service that would have VA loan benefits. The VA loan program is one of the best if not the best mortgage loan option available to those who qualify.
The VA loan is similar to the FHA loan in that the VA doesn’t actually lend the money but rather backs or guarantees the loan. The Veterans Administration will repay a portion of the value of the loan in the event that the borrower defaults. In doing so this gives a VA-approved lender protection. In return, the lender can lend with confidence and offer better terms and rates than you might see with other loan programs.
VA Loan Benefits and Options
The VA loan program offers different options for veteran borrowers and each option has it’s own VA loan benefits designed to help veterans save money depending on the situation.
Below are the VA mortgage options available to veteran borrowers.
Purchasing With a VA Home Loan
VA home loans are benefit veterans have earned and deserve. The VA loan benefit is available for veterans who may be a first time home buyer or looking to buy a second or even third house. That is the beauty of the VA loan you can use it over and over.
The VA Loan allows veterans to purchase a home with no money down. It is one of the only mortgage products on the market that still offers a 100% financing. Another thing is VA loan rates are usually lower than other traditional loan programs and there is no PMI (Private Mortgage Insurance) that would usually be required for an FHA loan. Now, that being said there is a VA funding fee that is included in the closing costs but that is designed to protect the VA in the case of a foreclosure.
VA Refinance Benefits and Options
The VA loan also has a couple of very attractive refinance options. The VA cash-out and the VA streamline loan also known as the VA IRRRL (Interest Rate Reduction Refinance Loan).
The VA cash-out loan allows veterans to refinance up to 100% of the value of the home and pull out the equity getting cash back.
The VA IRRRL is probably the most popular loan option because it allows veterans to refinance fast and easy without all the traditional paperwork of a purchase loan. The VA streamline is designed to be fast and easy helping veterans to lower their interest rate and save money.
The VA Home Loan Process
If you are a veteran or surviving spouse of a veteran eligible for a veteran mortgage loan and you are considering on buying a new home the VA loan program should be your first option. Again it is an outstanding program that offers tremendous benefits for veterans that may not have enough for a down payment.
VA Home loan process steps
- Get Your Certificate of Eligibility
- Contact a Good VA Lender
- Get Pre-Qualified
- Contact a Good Local Realtor
- Find a Home
- Make an Offer
- Enjoy Your Dream Home!
The VA loan process starts with getting your VA certificate of Eligibility (COE). Second, you should contact a reputable VA lender and see how much you qualify for. We recommend Low VA Rates. Third, contact a local realtor. You should work with a realtor especially when you are buying a home. A realtor will help you find the best home for your budget.
VA Property Guidelines
Properties eligible for veteran home loans are single family homes, townhomes, condos, two, three and four unit family dwellings. Certain guidelines have to be followed by new home construction. Also, the home appraisal on properties of interest will need to be appraised by a VA approved appraiser.
If you are a veteran you should strongly consider the veteran mortgage loan program. Take advantage of your VA benefits and get into the house you want with lower interest rates and less money down.