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VA Loans

The Veterans Administration (VA) offers mortgage loans to qualified veterans and current enlisted personnel.  The VA home loan is very attractive for a number of reasons.  Most notably, a VA mortgage does not require any down payment.  In addition, VA mortgages are not subject to Private Mortgage Insurance.

Besides the competitive interest rates and no down payments, homeowners with VA loans are free to pay extra money towards their loan with no pre-payment penalty.  Should the homeowner decide to sell the home it is possible for another qualifying individual to assume the existing VA loan.

The VA does not administer or offer the loans; rather, they oversee the guidelines and lending policies of mortgage bankers and banks.  This means that various lenders can offer the VA loans in order to reach more people in a timely manner.

VA Purchase

Veterans, currently enlisted personnel, and former members of the National Guard or Nation Reserve may be eligible for the VA loan.  Obtaining a Certificate of Eligibility from a mortgage banker is usually the first step to make sure the borrower qualifies for the VA loan benefit.  After determining eligibility, the borrower will need to find a suitable home.  The current maximum amount for a VA loan is $417,000 except for high cost areas. VA Loan Limits

VA Rate and Term Refinance

VA borrowers that have a mortgage with a rate higher than current interest rates may be eligible for a rate and term refinance.  If the existing mortgage balance combined with necessary loan costs does not exceed 90% of the homes current value, then the borrower can refinance the loan to take advantage of better rates or a better term or both.

VA Streamline Refinance (VA IRRRL)

The VA offers the Interest Rate Reduction Refinance Loan (IRRRL) to help borrowers when market rates drop.  A homeowner that is currently making payments on a VA loan can refinance to a lower interest rate without the need for a full credit report, provided that the last 12 mortgage payments have been paid on time.

VA Cash Out Refinance

Current borrowers paying on a VA mortgage can refinance their loan and use equity in their home to pay off other bills or debt.  The VA guidelines allow borrowers to finance up to 90% of the appraised value of the home.

Additional Resources
VA Loans Limits
VA Funding Fee




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