If you’re a veteran, you can access more loan options than a typical citizen. While active and retired service members can access traditional loan products, they also get some outstanding benefits with Veteran Affair-backed loans.
VA loans are one of the best benefits to eligible service members and veterans because they are incredible wealth-building tools and make it possible for borrowers to purchase a home without a down payment. To find out if you are eligible for a VA home loan, review the eligibility requirements for VA home loan programs here.
VA home loans are government loans backed by the Department of Veterans Affairs, which enables them to offer better terms to eligible borrowers. That means no money down, more relaxed financial requirements, and a lower interest rate.
Here are the main VA Loan Options.
VA Home Purchase Loan
This loan option is for a traditional primary residence purchase. No minimum credit score is required, but most lenders want to see a score of 620 or higher. VA home loan limits are the same as FHA conforming loan limits, which change by county. The best way to discover the loan limit in your area is by working with an experienced VA home loan specialist like The Simpson Team.
VA Jumbo Home Purchase Loan
FHA loan limits don’t restrict veteran benefits. Those looking to purchase a higher-value home can do so with a VA jumbo loan. These loan limits exceed the conforming limits, and borrowers can get loans up to $1.5 million with no down payment.
VA Renovation Loan
VA Renovation Loans or VA Rehab Loans fund the purchase of the property in addition to the costs needed to renovate. This loan enables borrowers to buy homes that need improvement. However, it will only finance improvements required to make the property liveable, such as a new heating system or roof, and all work must be completed within 120 days of closing.
VA Cash-Out Refinance
Veterans who already own a primary residence can use a VA Cash-Out to refinance their property and then relocate their equity into a different investment or purchase.
VA Rate/Term Refinance
Veterans who already own their primary residence but have financing that isn’t a VA loan can use a VA Rate/Term Refinance to get a better rate or term on their home. These refinances can dramatically improve a household’s finances or help them to pay off their home faster.
VA Interest Rate Reduction Refinance Loan (IRRRL)
Similar to a VA Rate/Term Refinance, the VA IRRRL loan allows homeowners to improve their interest rate. However, these products are for borrowers who already have an existing VA loan. The considerable benefit of this loan option is that less documentation is required, and there’s a lower VA funding fee.
For more information on VA loans, visit our VA-loan information page or schedule a free no-obligation call with a member of The Simpson Team.
