There’s more than one type of VA loan

by Ryan Smith20 Jun 2016
For originators looking for a broader selection of products, VA loans are a valuable asset. The loans held service members, veterans and surviving spouses become homeowners. The loans are guaranteed by the VA, meaning originators can generally find more favorable terms for their customers.

But purchase loans aren’t the only products in the VA toolkit. There are several types of VA loans, and originators should be familiar with all of them.
  • Purchase loans: The VA purchase loan helps eligible borrowers purchase a home at a competitive interest rate – often without requiring a down payment or mortgage insurance
  • Cash-out refinance: These loans allow borrowers to take cash out of their home equity,
  • Streamline Refinance Loan: Also called the interest rate reduction refinance loan (IRRRL), this loan allows borrowers to get lower interest rates by refinancing an existing VA loan.
  • Native American Direct Loan (NADL) Program: This program helps eligible Native American veterans finance the purchase, construction or improvement of homes on federal trust land, or reduce the interest rate on an existing VA loan.
  • Adapted Housing Grants: This program helps veterans with a permanent and total service-connected disability purchase, build or improve homes on federal trust land, or refinance an existing VA loan.
For more information on these programs, visit http://www.benefits.va.gov/homeloans/.
 

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