VA Loan

VA Loan Overview

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A VA Loan is a loan offered to qualified veterans and other military personnel that is guaranteed by the US Department of Veterans Affairs. The United States government created VA Loans to help those who have risked their lives in service to their country. The government enacted the laws that put loans for veterans into place so that they would be on a more even playing field with their American counterparts in terms of purchasing a home. Since a military lifestyle includes the possibility of deployment, frequent moves, and less of an opportunity to save money, VA Loans help veterans get into homes for themselves and their families.

The various VA Loan options each offer a number of benefits to veterans, including No Down Payment in most cases, Lower Interest Rates, and a host of other positive aspects. As the most attractive loan program around, veterans can get into a home for their family with 100% financing and NO DOWN PAYMENT in the vast majority of cases. Veterans can still get loans with poor credit scores and miss two payments with VA Streamline Refinance Loans. They are also not required to provide earning statements or job verification in order to qualify for a VA Streamline Refinance Loan.

Additional VA Loan Benefits

In addition, veterans save money with no monthly mortgage insurance payments, enjoy much lower monthly interest rates, and are never penalized for early payments or pre-paying. Veterans have the backing and guarantee of the Veterans Administration, and can also use the financial counseling services at the VA if need be.

There are also limitations on how much veterans have to pay for closing costs. In some contracts, the seller assumes the closing costs in their entirety. Property taxes and homeowner’s insurance payments are spread out over a period of time, and conventional mortgages can be refinanced with VA Loans.

A Snapshot of VA Loans

  • No Down Payment in most cases
  • 100% financing in most cases
  • Lower monthly payments
  • No monthly mortgage insurance payment
  • Streamline refinance opportunities where they can miss two payments
  • Loans for veterans with poor credit
  • Fixed-rate loans
  • $6,000 available for energy-efficient improvements

Types of VA Loans

There are various types of VA Loans that can be used for a variety of different purposes.

The main types of VA Home Loans include:

  • The Traditional VA Home Loan
  • VA Streamline Refinance Loans
  • VA Cash-Out Refinancing Loans
  • VA Energy Efficiency Loans
  • VA Home Improvement Loans
  • VA Jumbo Loans; and
  • VA Super Jumbo Loans

Streamline Refinance Loans

For veteran homeowners with an existing VA Loan who have fallen on difficult financial times, the VA Streamline Refinance Loan has become a very popular method of reducing their monthly interest rate. Streamline refinancing doesn’t require an income minimum or qualifying credit score. In addition, because the VA uses your previous paperwork you submitted for your original VA loan, the process time is much faster and easier. In order to receive a VA Streamline Refinance Loan, you cannot have had more than one 30-day late payment in the last year.

Streamline Refinance Loan features include:

  • The opportunity to skip up to two monthly mortgage payments
  • Much lower monthly interest payments
  • No credit or income check
  • No appraisal
  • Quick closing
  • No out-of-pocket costs
  • Up to $6,000 for energy efficiency improvements or additions to your home

For veterans in financial distress, the opportunity to miss the next two monthly payments on their home as well as enjoy a lower monthly mortgage payment is extremely attractive. Many VA Streamline Refinance Loan recipients have used this option to prevent their home from going into foreclosure.

VA Jumbo Loans

VA Jumbo Loans offer veterans and other qualified borrowers the opportunity to purchase their dream homes that many times, they would otherwise be unable to afford. Traditional VA loans cap guarantee 25% for homes that cost up to $417,000, though in higher cost counties the dollar amount is raised according to typical home prices in that county.

But with VA Jumbo Loans and VA Super Jumbo Loans, veterans can now borrow up to $1,000,000 to buy a home they love. VA Jumbo Loans do require borrowers to put down 25% of the home price above and beyond the $417,000. VA Jumbo Loan recipients also have to cover the funding fees and pay them in cash. However, VA Jumbo Loans are still preferable to conventional mortgage loans for the benefits they confer. Moreover, veterans are able to choose their dream homes.

Features of VA Jumbo Loans

  • Loans of up to $1,000,000 for qualified borrowers
  • Borrowers pay the funding fee and 25% of the home price above and beyond the allotted home price the government assigns to their county
  • The opportunity to still participate in the VA Home Loan Program and live in their ideal home at the same time

More on VA Loans

As a VA loan company, we specialize exclusively in VA home loans, VA jumbo loans, and VA Streamline Refinance Loans for veterans, surviving spouses, National Guardists and Reserve personnel. Our VA Loan service has handled countless VA Loans and helped the servicemen and women of our country get the loans and rates they deserve. If you are a veteran or are qualified to receive a VA loan and want to take advantage of this valuable resource available to you, please submit our VA Loan request and an experienced VA Loan specialist will respond shortly.