VA Loans Explained
The Veteran's Administration (VA) helps Veterans, Members of the Armed Services, and eligible surviving spouses become homeowners. The VA provides a home loan guaranty benefit and other housing programs to help you buy, build, repair, retain, or adapt a home for your own personal residency.
VA Home Loans are provided by private lenders, and the VA guarantees a portion of the loan, which enables the lender to provide you with more favorable terms.
There are many types of VA Loan Benefits:
Purchase Loans: help you purchase a home at a competitive interest rate often without requiring a downpayment or private mortgage insurance (PMI).
Cash Out Refinance Loans: allow you to take cash out of your home equity to consolidate debt or make home improvements.
Interest Rate Reduction Refinance Loan (IRRRL): also called a Streamline Refinance Loan can help you obtain a lower interest rate by refinancing your existing VA loan.
Native American Direct Loan (NADL) Program: helps eligible Native American Veterans finance the purchase, construction, or improvement of homes on Federal Trust Land, or reduce the interest rate on a VA loan.
Adapted Housing Grants help Veterans with a permanent and total service-connected disability purchase or build an adapted home or to modify an existing home to account for their disability.
Here are some of the Eligibility Requirements:
Your service length, duty status and character of service help to determine your eligibility for specific home loan benefits.
Purchase Loans and Cash-Out Refinance: VA-guaranteed loans are available for homes for your occupancy or a spouse and/or dependent (for active duty service members). To be eligible, you must have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility (COE).
Interest Rate Reduction Refinance Loan (IRRRL): The IRRRL is a "VA to VA" loan, meaning it can only be done if you have an existing VA guaranteed loan on the property. The IRRRL is generally performed to lower the interest and reduce the monthly payment on the existing VA guaranteed loan.
Native American Direct Loan (NADL) Program: The NADL program helps Native American Veterans purchase, construct, improve, or re-finance a home on Native American trust lands. Your tribal organization must participate in the VA direct loan program. You must have a valid Certificate of Eligibility (COE).
Adapted Housing Grants: VA helps Veterans with certain total and permanent disabilities related to your military service obtain suitable housing with either a Specially Adapted Housing (SAH) or Special Housing Adaptation (SHA) grant.
How to Apply
Purchase Loan & Cash-Out Refinance: VA loans are obtained through your lender once you obtain a Certificate of Eligibility (COE). You can obtain a COE through eBenefits, by mail, and sometimes can be obtained through your lender.
Interest Rate Reduction Refinance Loan: A new Certificate of Eligibility (COE) is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement or your lender may use the e-mail confirmation procedure in lieu of a certificate of eligibility.
Native American Direct Loan (NADL) Program: First, confirm that your tribal organization participates in the VA direct loan program. NADL loans are obtained through a lender of your choice once you obtain a Certificate of Eligibility (COE). You can obtain a COE through eBenefits, by mail, and often through you lender.
Call us today with any VA eligibility or financing questions at 207-883-2003.