The Different Types of VA Loans
The honor and prestige that the hallmark of US war veterans displays, adds to the glorious history that the country projects with pride. The government has always stressed on several welfare development programs and plans to make the lives of veterans and servicing armed force people comfortable in the best way. A Veteran Affairs Loan program is one such initiative, designed by the Department of Veteran Affairs to help these brave men and women get access to easy home loan at low-interest rates, to fund their home ownership dream. In this context, we would like to bring into notice the varied types of VA loans that veterans can hope to consider to make the affair less tedious and more fruitful.
VA Purchase Loans – This type of VA loan is especially beneficial for veterans whose earnings fall within a minimum qualifying income bracket to buy a primary residence. One would not need putting any amount of money towards the sale price of the home, as long as the sale price stays within the appraised value of the loan. The buyer also does not need worrying about the closing costs of the loans, as the seller is bound to pay the closing costs after proper negotiation. Though 100% financing is a possibility for one who opts for this loan, there are other advantages as well:
• The loan’s closing costs would be limited which means you would not be asked to pay after a certain limit.
• For a qualified VA loan applicant, you can assume the amount of a VA home loan.
• You are always having a VA loan behind you, if you are having any problems while making your home loan payments in future
• Veterans can prepay a VA home loan without penalties under any circumstances.
VA Refinance Loans – After one has started living in their purchased houses, there are many examples where people need extra cash. If you are looking for more expenditure for a quick house renovation, you can always hope to raise more funds by keeping your home as a source of equity for future borrowings. You should have ample information about the terms, conditions, and timings. This loan requires people to pay their current real-estate debts from the proceeds of a new VA mortgage. This is why this loan is also termed as ‘cash-out’ refinance. Loan takers should gather information about its various discrepancies before signing up for one.
VA Streamline Refinance Loans – The VA Streamline Refinance Loan or the IRRRL is a great way for current VA homeowners to bring down interest rates on repayments with the help of little or no out-of-pocket costs. Your mortgage refinancing at a lower interest rate than what do you have paid. This refinance loan is available for only those veterans who wish to refinance their original VA home loan by using their original eligibility. Easy and faster sanctioning with little need for paperwork is a surety for these types of loans.