The term VA Loans is well known in the veteran and service community, however, if you’ve not needed a loan you might not be up to speed with what these types of loans are and how they are different to standard loans available from banks and lending institutions.
To get a clear understanding of VA loans and what they actually do for veterans we’ve put together the basic info you need to know so you can ensure you are getting the best finance for your needs and situation.
First up, what is a VA Loan?
VA Loans are loans provided to lending companies to American war veterans and their partners. The VA part stands for ‘U.S Department of Veteran Affairs,’ and these loans are specifically for people who have returned from service for the US.
The purpose of the VA Loan is to provide returning veterans with finance at a competitive rate, which is usually much lower than the standard available rate to non-veterans.
The loan is guaranteed by the U.S Department of Veterans Affairs and supplies home financing to eligible veterans and helps to purchase properties with no downpayment.
What type of VA loans are available?
The VA loan is ideal for veterans looking to kick off a fresh start following their discharge from the forces.
VA Loans are provided by private lenders including banks and mortgage companies and ensure mortgages are offered on favorable terms for the veteran.
Benefits of VA Loans
Get a loan without a downpayment – one of the most significant benefits of VA Loans is the fact that veterans can purchase a home at a competitive price without a downpayment.
Cash out refinance options – this option allows VA Loan recipients to take equity out of the home to take care of school payments, home improvements or refinancing.
Interest rate reduction refinance loan – this IRRRL helps to streamline your finances and provide a lower interest rate which can help to reduce costs and pay the mortgage off sooner.
To find out more about eligibility for the VA Loan click here.
If you’re a U.S. veteran and you’re interested in applying for a VA Loan, you can learn more by visiting the U.S. Department of Veteran Affairs website to review information for reliability and how to apply.