The VA loan is a $0 down mortgage option available to Veterans, Service Members, and select military spouses. VA loans are issued by private lenders, such as a mortgage company or bank, and guaranteed by the U.S. Department of Veterans Affairs (VA). Today, the VA mortgage is more important than ever.
No application, processing, underwriting, or origination fees
No down payment required up to a $1.5MM sales price
Lower interest rates and no monthly PMI
Higher debt to income ratios and credit scores as low as 580
Veterans and servicemembers can use the VA loan to purchase new or existing homes with a $0 down payment. VA purchase loans also allow Veterans to buy single-family homes, condominiums, manufactured homes, multi-unit 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.