Updated January 2018
The VA loan program is popular with active duty and Veterans all across America and many people who are interested in qualifying for a VA loan are using free sites like VAMortgageQualify.com to get matched with a VA approved lender.
The VA loan program allows veterans to purchase a home with 100% financing and have no monthly mortgage insurance. For veterans who currently have a VA loan that is at a higher-than-market interest rate, they can easily take advantage of the VA streamline (aka VA IRRRL) refinance with no out of pocket closing costs required.
Most people are aware that the VA doesn’t actually lend money. They work with VA approved lenders who provide the financial backing. The VA only insures your loan so that if you default, the lender gets paid. Because VA loans are backed by the government, lenders are excited to lend money to Veterans who qualify for the VA loan program.
Highlights of the VA mortgage loan program include:
- 100% financing for new home purchases
- No mortgage insurance required
- No prepay penalty in any VA loan
- VA loans have similar closing costs to other loans, even though they offer 100% financing
- A one time funding fee is charged – but can be rolled into the loan
- You can use a VA loan to buy a home, build a home and even improve a home with energy-saving features such as solar heating or cooling systems, water heaters, insulation, weather-stripping, storm windows/doors or other energy efficient improvements approved by the lender and VA.
Certificate of Eligibility
When getting a VA loan, it is required that you get a Certificate of Eligibility from the VA and it must be in your loan package in order to qualify. If you have questions about getting your COE, the lender you are working with can usually help you get a COE or answer questions that you might have about it.
The VA Streamline Program
If you are currently in a VA loan and are interested in getting a lower interest rate by refinancing, the VA has made it easy for you. The VA streamline refinance program has reduced paperwork, may not require an appraisal and is designed to let you get a lower interest rate in the easiest possible way. The VA streamline program is also called the VA IRRRL program.
The VA Cash-Out Refinance Program
The VA cash-out refinance is for Veterans who want to convert the equity in their home and put the money to use in other areas. It is possible to get 100% of your home’s appraised value in the form of a check or to pay off other non-VA mortgage debts. Find out more about the VA cash-out refinance here.
VA Loans: How To Save The Most Money
Regardless if you are buying a home or refinancing your VA loan, many people find that using a free site like VAMortgageQualify.com can help you find the best possible lender for your situation. Of course, most lenders are not going to tell you that the secret to getting the best deal is to shop around – but when you shop, lenders are encouraged to offer you their best deal – and you might be surprised at how different each rate quote is for your situation. Shopping for lenders is easy, free and only takes a few minutes.