18 Feb How Can You Qualify for VA Home Loan Benefits?
Introduced by the U.S. Department of Veterans Affairs in 1944, VA Loans aid veterans and active military members in purchasing fully-financed homes without any down payment or private mortgage insurance. VA Loans are backed by the U.S. Department of Veterans Affairs, helping veterans live a stable and secured post-retirement civilian life.
How Are VA Loans Different From Conventional Loans?
Most conventional loans require a down payment of up to 20% with stricter guidelines, higher interest rates, and a higher credit score. On the other hand, VA Loan benefits include 0% down payment, lower interest rates, flexible and more forgiving guidelines, and no PMI requirement. Intended to help veterans transitioning into the civilian lifestyle, this initiative also comes with refinancing and pocket-friendly mortgage options.
Types of VA Loans
VA Loans benefits are provided to qualified veterans, active military members, and eligible spouses. Here are different types of VA Loans –
- V.A. Purchase Mortgage: This VA Loan option lets eligible applicants purchase single-family homes, manufactured homes, duplex, and new constructions at absolutely 0% down payment and without private mortgage insurance.
- V.A. Streamline Refinance: Also known as VA Interest Rate Reduction Refinance Loan or IRRRL, VA Streamline Refinance is a low-cost refinance option that might not require any credit check, income validation, or other related documents. This VA Loan option comes with exclusive financial benefits and enables you to pay back your loan at a new rate, usually less than the old one.
- V.A. Cashout Refinance: Open to Veterans and Non-Veterans Loans, this VA Loans facility allows the selected candidate to refinance their loan and convert their home’s equity into cash.
- V.A. Rehab and Renovation Loans: VA Home loans can help veterans finance up to 6000$ for home renovations and other energy-efficient requirements.
Eligibility for VA Loans
Besides supporting veterans and active military members, VA Loans are also available for the service members belonging to National Guards or Reserves.
You can apply for VA Loans if-
- You are an active military member, a veteran, or an officer of Public Guards or Reserves, meeting length-to-length requirements.
- You are a surviving spouse of a military member who died during active years of service, was a prisoner in war, suffered from an injury, or went missing during active service.
- You purchase the property with the intent to make it your primary residence.
Can I Avail My VA Home Loan Benefits More Than Once?
If you meet the VA Loan Guidelines after repaying your first loan, then you can apply for the loan as many times as you want.