Different Types of VA Loans

The honor and prestige that US war veterans bring to the nation can’t be compared to anything. This is the reason that the government has always stressed on welfare development programs for making the lives of veterans as well as the ones who are still serving the nation. A Veteran Affairs Loan Program was launched by the ‘Department Of Veteran Affairs’ for those brave hearts who served the country so that they could easily fulfill their dream of buying a home. VA loans offer veterans and current servicemen access to easy home loans at low-interest rates, which allow them to fund their homeownership dream. However, VA loans are not one dimensional, as there are different types of VA loans available on the market, which veterans can consider to make their dream of getting a home loan less daunting and more fruitful.

VA Purchase Loans – This type of VA loan is very beneficial for veterans whose earnings fall within the minimum qualifying income bracket for buying a primary residence. There is no need to put any amount towards the sale price of the house until the sale price is well within the appraised value of the loan. The buyer too should not worry about the closing rates of the loans, as the seller will pay the closing rates once the negotiation is done. There is a possibility of getting 100% finance in this loan, but there are several other advantages as well.

  1. The closing costs of the loan will be limited, which means you won’t be prompted to pay after a certain limit.
  2. If your application is qualified for a VA loan, then you can assume the amount of VA home loan.
  3. VA loans always have your backing in case you run into problems while making your home loan payments in the future.
  4. It is easy for veterans to prepay a VA home loan without any penalties regardless of what the circumstances are.

VA Refinance Loans – Once a veteran starts living in his purchased house, there will be a possibility that he may require cash in hand to pay bills and other essential expenses. In case there is an urgent house renovation, a veteran can raise funds by keeping his house as a source of equity for borrowings. Those who want to opt for this type of loan must acquire ample information about the terms & conditions along with timings. In order to get this loan, veterans need to pay any real-estate debt they are having from the proceeds of a new VA mortgage. It is due to this reason that the loan is also called ‘cash-out’ refinance. Anybody willing to get this loan should gather information about its several discrepancies before signing up for one.

VA Streamline Refinance Loans – This type of loan is also known as IRRRL, and it is used to reduce the interest rates on repayments using little to no out-of-pocket costs. This loan when a veteran is looking to refinance his mortgage at a lower interest rate, but only available to those who originally got their loan guaranteed by VA Loans. This type of loan can be sanctioned easily and quickly with lesser paperwork.

To know more about any of the aforementioned VA loans, get in touch with PIF Lending. They can also help get your loan approved smoothly.