The Department of Veterans Affairs (VA) has many special programs in place for veterans who served for the country. These programs help these brave individuals and their families in different areas of their lives. From healthcare and education to home loans, many special VA plans provide financial assistance to veterans.
However, there are some veterans benefits that usually slip through the commonplace knowledge. Veterans should know about them. One such is about VA home loans- a special loan scheme started in 1944 by the US Government to help veterans and active service members get their home at low-interest rates and with a range of other advantages over traditional home loans.
First things first, VA mortgage loans are almost everywhere in the US. Interested and qualified veterans can apply for and get VA mortgage loans in Texas, Colorado, Florida, Idaho and many other US states at ease. One of the biggest advantages of VA home loan is that it comes with lower interest rates than standard loans. Apart from that, it is available with $0 down payment and many other attractive benefits.
Types Of VA Mortgage Loan
Many are aware of VA home loan to purchase a house, but very few of them know that the special loan program is not just to get a home. There is more than one type of VA mortgage loans.
VA Purchase Loan
This is the most popular type of VA loans. A qualified veteran can apply for the loan to purchase a new home. A borrower can have a loan with up to 100% LTV of the purchase price. It comes at low-interest rates and various other benefits like $0 down payment, no PMI, and others.
Refinance VA Loan
It is a loan type where one can lower interest rates of their existing VA loan. Using it, a borrower can refinance up to 100% of their home value. Like VA purchase loan, borrowers can get refinance VA mortgage loans in Idaho, Texas, and other states where VA home loan services are available.
VA Cash Out Loan
It is a VA loan refinance option for those veterans who are willing to avail the benefits of their home’s equity to access cash to make necessary improvements in the house. Apart from that, the borrowed amount can also be used for other emergencies.
VA IRRL (VA Streamline Refinance loan)
Also known as ‘Streamline’ refinance, the VA loan type is for those veterans who already have a VA home loan. They can use the program’s benefits to realize significant savings and have lower interest rates.
Who Can Apply For VA Home Loan
VA home loan program is for veterans, active service members, reservists, and National Guard members. Apart from that, spouses of military members who died on duty can also apply for VA home loans.
An interested borrower qualifies for the loan if:
They have served at least 90 consecutive days on the field during wartime.
They have served at least 181 consecutive days during peacetime.
They are active service members. In addition, they should be members of National Guard or Reserves who have served for at least 6 years or more.
They are married to a service member who died while serving on the field.
How VA Home Loans Work
VA home loans come with lots of attractive benefits for qualified individuals. As supported by the VA, getting the loan is an easy and quick procedure. Some of its work processes are similar to standard housing loans while others are different.
A borrower has to pay monthly payments. The amount depends on the loan amount, interest rates, and the time to pay the loan.
The actual payment may vary with the situation of a borrower.
A borrower can pay the mortgage anytime without fearing of pre-payment penalties.
VA home loans come without PMI.
Individuals with a low credit score can also apply for the loan.
Whether someone is looking for VA mortgage loans in Florida, Colorado, Texas, or any other state, it is necessary to understand everything about the program. The interested borrower should check interest rates and fulfill all the requirements to speed up the loan approval process.