REGION – Do you know all your VA home loan benefits? I’ve met buyers and homeowners who are surprised to learn just how flexible these mortgages can be. They usually know it can help them purchase a home with $0 down, but they don’t always realize it can also support other goals, like refinancing, renovating, or accessing home equity.
What is a VA home loan?
A VA home loan is a government-backed mortgage, a portion of which is guaranteed by the U.S. Department of Veterans Affairs (VA). It was created for eligible veterans, active-duty service members, and qualified surviving spouses to make buying or refinancing a home more accessible.
The cool thing about these loans is the benefits they allow a lender to offer that aren’t always available with a conventional loan. That can include options like no down payment, no private mortgage insurance, and, at PrimeLending, no lender fees.
Other benefits include the ability to finance a higher-priced home, depending on eligibility and loan limits; no penalty for paying off your loan early; limits on certain closing costs; the option for the seller to help pay eligible closing costs; and possible support from the VA if you have trouble making payments.
What are my VA loan options?
Like other mortgage programs, VA loans aren’t one-size-fits all. Some of the most common options are listed here:
- VA fixed-rate mortgage: predictable monthly payments, great for people planning to plant roots.
- VA adjustable-rate mortgage (ARM): flexibility, especially if you’re expecting to move in the next few years.
- VA jumbo loan: a good option to help eligible borrowers buy homes that are above standard conforming loan limits.
- VA renovation loan: helps finance home improvements or upgrades
- VA cash-out refinance: access a portion of your home’s equity as a lump-sum cash payout to use any way you want (tuition, consolidating high-interest debt, unexpected expenses, etc.).
- Interest Rate Reduction Refinance Loan (IRRRL): refinance at a lower interest rate to help lower your monthly payment or change your terms.
I know that list might look intimidating, but you don’t need to know what option fits you best before reaching out. That’s what I’m here to help you figure out.
Who qualifies?
Veterans, active-duty service members, and qualified spouses may all be eligible for a VA mortgage. This may include active-duty service members, veterans with honorable discharge, National Guard or reserve members with enough service time, or an eligible surviving spouse of a service member who died in the line or duty or from a service-related injury.
To confirm that you meet the VA’s requirements, you will need to request a Certificate of Eligibility (COE). Not sure if you would qualify? That’s totally normal. Just know, you don’t have to figure it out alone. I can help you review the basics and walk through what may be needed.
Whether you’re buying, refinancing, renovating, or just trying to understand your VA loan options, I’d be happy to walk you through everything.
Submitted by Victoria Blodgett, Prime Lending, Ludlow, Vt.