Why use a VA Loan?
VA guaranteed purchase loans may help you purchase a home at a competitive interest rate often without requiring a down payment or private mortgage insurance. VA refinance loans can be used to replace your high interest or variable rate mortgage with a lower fixed rate mortgage. VA cash out refinance loans allow you to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements.
Interest Rate Reduction Refinance Loan (IRRRL), also called the Streamline Refinance Loan, can help you obtain a lower interest rate by refinancing your existing VA loan.
The guarantee VA provides to lenders allows them to provide you with more favorable terms, including:
- No down payment required as long as the sales price doesn’t exceed the appraised value.
- No private mortgage insurance premium requirement.
- VA rules limit the amount you can be charged for closing costs.
- Closing costs may be paid by the seller.
- The lender can’t charge you a penalty fee if you pay the loan off early.
- VA may be able to provide you some assistance if you run into difficulty making payments.
You should also know that:
- You don’t have to be a first-time home buyer.
- You can reuse the benefit.
- VA-backed loans are assumable, as long as the person assuming the loan qualifies.