Are you or your spouse currently active in the US Military or a Veteran? If yes, you may qualify for a Veterans Affairs Loan, also called VA Loans.
Here are just some of the main benefits of financing your home with VA Loans:
- 100% financing- NO Down Payment Required to qualify!
- NO Private Mortgage Insurance (PMI)
- The sellers can pay all of your closing costs
- Loan amounts go up to $417,000.
- Energy Credits on Energy Saving home features
- Upfront fee is waived for Veterans that were disabled during service.
These are just some of the benefits, but certainly not all of them! VA loans are a unique type of mortgage loan that can be used to purchase a family’s single-family home, whether it’s a condo, new construction single family, manufactured home, or older home. The Department of Veterans Affairs does not originate your loan, but they set the guidelines and requirements for mortgages that can be offered under a VA loan. Because VA loans are backed by the Department, no PMI is added to the monthly mortgage payment, whereas other low or no down payment loan options typically have PMI.
Refinancing with a VA Loan
Fun fact, refinancing with a VA loan is not only for those that already have an existing VA loan! Perhaps you were one of those that were told to avoid VA mortgages, and now wish you weren’t hampered by expensive monthly private mortgage insurance. Or, perhaps you want to use the equity of your home to make some necessary, or desired, repairs to your home. All of that can be achieved with VA loans and refinancing! Many Veterans know about an original VA mortgage, but don’t realize they can also refinance with the same program.
Now, if you DO already have a VA loan, you may have purchased your home when interest rates were higher and wish to lower your monthly payment. In this case, the VA offers what they call the Interest Rate Reduction Refinance Loan, or IRRRL. This is a “VA to VA” refinance and is also called a “Streamlined Refinance”.
A IRRRL “Streamlined Refinance” can be great because it eliminates a lot of the hassle of a normal refinance mortgage:
- No appraisal or credit underwriting is required for an IRRRL.
- An IRRRL may be done with “no money out of pocket” by including all costs in the new loan
If you refinance your mortgage with an IRRRL, you can refinance the value of the property if necessary! However, you may not receive any cash from the refinanced loan proceeds.