A VA loan is a government-backed mortgage option available to Veterans, service members and surviving spouses. VA loans are made by private lenders, like mortgage companies and banks, and not the Department of Veterans Affairs.
VA home loans offer competitive interest rates and terms and can be used to purchase a single-family home, condominium, multi-unit property, manufactured house or new construction.
A VA mortgage is a specialized home loan product, but the process for buying a home with one is similar to any other mortgage type. You'll work with a qualified lender to get preapproved, shop for a home, make an offer, go through the underwriting and appraisal process and finally, loan closing.
Beyond the benefits like $0 down payment and no mortgage insurance, the largest difference with VA loans is that the lender will need to verify your eligibility for a VA loan - an item typically done by the lender in-house. Get a detailed look at the VA loan process here.
If you're ready to start your VA loan, check your eligibility or have specific questions on the VA loan, talk with a Veterans United Home Loans specialist today.
The federal government created the VA home loan program to make homebuying easier for those who serve our country. This benefit program offers arguably the most powerful loan option on the market. Qualified Veterans can purchase with no down payment, no mortgage insurance, flexible credit guidelines and the industry's lowest average fixed rates.
The VA loan benefit offers qualified Veterans multiple powerful home financing options.
Veterans and service members can use the VA loan to purchase new or existing homes with $0 down payment. VA purchase loans also allow Veterans to buy single-family homes, condominiums, manufactured homes, multiunit properties (like a duplex) and even new construction.
Policies and guidelines can vary by lender. Some lenders may not make all of these types of VA purchase loans.
The VA Interest Rate Reduction Refinance Loan (IRRRL) is one of the VA loan program's two refinance options and the one most Veteran homeowners choose.
These are also known as VA Streamlines, and that's because they're simple, low-cost refinance loans that in some cases might not require credit underwriting, income verification or an appraisal.
The VA IRRRL is only for Veterans who currently have a VA loan, require your new rate is smaller than your old rate and have a limit on the time it takes to recoup the costs and fees. All of which help ensure Veterans realize the full financial benefit.
The VA Cash-Out refinance allows qualified homeowners to refinance their mortgage and take out cash from their home's equity. These loans are open to Veterans with and without current VA loans. Qualified homeowners can typically refinance up to 90 percent of their home's value.
Lending guidelines and loan-to-value requirements can vary by lender. Homeowners are not required to take out cash with these loans, which means Veterans with non-VA mortgages can use this option as a basic rate-and-term refinance.
The VA allows Veterans to borrow additional money to pay for energy efficiency improvements to a home, as part of either a home purchase or a refinance.
Veterans can finance up to an extra $6,000 to cover the cost of qualified improvements, like storm or thermal windows, heat pumps and solar heating and cooling systems. Homeowners can't use this option to purchase appliances, window air conditioning units and other non-permanent additions.
The VA home loan was created in 1944 by the United States government to help returning service members purchase homes without needing a down payment or excellent credit. This historic program has guaranteed more than 25 million VA loans, helping Veterans, active duty military members and their families purchase or refinance a home.
Although the VA loan is a federal program, the government generally does not make direct loans to Veterans. Instead, private lenders including Veterans United Home Loans finance the loan while the Department of Veterans Affairs offers a guaranty. This guaranty protects the lender against total loss should the buyer default, which provides an incentive for private lenders to offer the VA loan with better terms than other mortgage options.
Qualified veterans with their full VA loan entitlement can borrow as much as a lender is willing to extend, all without a down payment. The VA loan limits only come into play for buyers with less than their full entitlement, either because they have one or more active VA loans or because they've lost a previous one to foreclosure.
VA loans are arguably the most powerful loan option on the market. They come with a list of big-time benefits, including $0 down payment, no mortgage insurance, flexible and forgiving credit guidelines and the industry's lowest average fixed interest rates. Every Veteran buyer's situation is different, and going over all of your loan options with a home loan specialist can help ensure you make the best financial decision possible.
Loan Officer | License ID: 1973185
Loan Officer Michelle Westbrook began her career in the financial industry in 2013. She initially started in a consumer lending role and processing home equity loans at a local credit union. She has helped many military service members PCS to Fort Cavazos and many others relocate to Texas. Michelle can finance homes anywhere in Texas and Missouri. She has one daughter who serves in US Navy, which is why finding her home at Veterans United was so important. She is especially passionate about assisting minority communities on their journey to homeownership. As your Loan Officer, Michelle will be with you every step of the process, ensuring it is as stress-free as possible!