The United States Department of Veterans Affairs (VA) guarantees mortgage loans for American veterans, active duty service members, reservists, and select unmarried, surviving spouses. These loans can be used to purchase most types of homes, and they can apply to purchases and refinances.
The VA sets the rules, but you still have to work with a lender. Because the VA sets minimum requirements and ensures that loans qualify under the program, you can often receive better rates and terms, no down payment (as long as the selling price is not above appraisal value), and other appealing perks.
You can use VA loan benefits again when refinancing or selling a home that was initially purchased using a VA-backed loan. This can be helpful when trying to get cash back out of your home’s equity, lower your current rate, or adjust your current term. Note that refinancing often requires a Certificate of Eligibility (COE) and all-new income and credit verification.
It is also possible to refinance a loan that isn’t backed by the VA into one that is. You might also qualify for an Interest Rate Reduction Refinance Loan (IRRRL) which could help you move from an adjustable rate to a fixed rate on your mortgage.
Since VA loans require no down payment or monthly mortgage insurance, you may need to pay a one-time VA funding fee which helps alleviate the burden on U.S. taxpayers who ultimately fund the program.
If you get pre-qualified with NOVA Home Loans, we will reach out to the VA about your eligibility so that all you have to do is sign some paperwork! If you think you might qualify for a VA loan, contact a NOVA Loan Officer near you today.