VA Home Loans – There’s One That’s Right for You

The Department of Veterans Affairs (VA) offers a range of home loan programs to assist Veterans, active-duty Service members, National Guard and Reserve members, and their families in achieving homeownership. These VA home loans provide favorable terms, competitive interest rates, and flexible qualification criteria. Read on to see which one might be right for you.

Purchase Loans: VA’s most common home loan program helps eligible borrowers purchase a home at favorable terms, often with no down payment requirement. Private lenders provide these loans but VA guarantees them, which lowers the risk for lenders and allows for more favorable loan terms. Borrowers may use these loans for preexisting homes, new construction homes, manufactured homes, and even multi-unit homes with up to four units if the borrower uses one as their residence.

Interest Rate Reduction Refinancing Loan (IRRRL): The IRRRL, also known as the VA streamline refinance loan, enables qualified borrowers to refinance their existing VA home loan into a new loan to take advantage of market reductions in interest rates. The streamlined process typically requires minimal documentation, making it a convenient option for those looking to reduce their monthly mortgage payments.

Cash-Out Refinance Loans: Cash-Out Refinance Loans allow eligible borrowers to refinance their existing mortgage while accessing the equity they have built in their home. This program can be an attractive option for those who need funds for home repairs, renovations, debt consolidation, or other financial needs. Homeowners can also use this to refinance a non-VA loan into a VA home loan, allowing the borrower to eliminate private mortgage insurance. VA also offers several “add-ons” to VA home loans:

Adapted Housing Grants: VA provides grants to help certain Veterans and Service Members with severe service-connected disabilities adapt their homes to improve accessibility. These grants can assist in modifying an existing home or constructing a new one to meet the specific needs of the Veteran. Recipients do not have to repay these grants. https://www.va.gov/housing-assistance/disability-housing-grants/ 

Energy Efficient Mortgage (EEM): The EEM program allows eligible borrowers to finance energy-efficient home improvements, such as solar panels, insulation, or energy-efficient appliances. By incorporating these upgrades into the mortgage, borrowers can enjoy lower utility costs and contribute to a more environmentally friendly home.

It is important to note that while these VA home loan programs provide attractive benefits, eligibility criteria and loan terms may vary. Working with a VA home loan lender or contacting a VA home loan representative directly (1-877-827-3702, M-F 8 a.m. – 6 p.m. EST) can provide more detailed information on specific requirements and benefits. We welcome you to call our office at 910.221.4440. We’re happy to help you find a VA-approved lender to obtain your Certificate of Eligibility (COE) and determine which loan will help you get your dream home.