There are VA home loan programs to help service members and veterans purchase a home, build a new home, or improve an existing home, or refinance your current home loan.
Purchase Home Loans
There are several different types of homes that you can purchase with a VA backed loan. These home types include:
- A single-family home, up to 4 units
- A condo in a VA-approved project
- A manufactured home or lot
New Home Construction
You can also use your VA benefit to purchase a new home from a builder, or secure a construction loan to build a home. However, securing a construction loan can be difficult due to the limited number of lenders who are willing to take the risk. It is more common for a VA loan to be the long-term financing that follows up the short-term construction loan.
A VA renovation type loan provides funding to make those needed updates to a property you are considering to purchase. When home inventory is in short supply more options open up when you have the ability to secure the funds to make improvements when you purchase it. This program generally allows for property repairs and improvements to be included in the value and completed after closing of the loan.
Refinance or Streamline Existing VA Loan
Many service members and Veterans who already have a VA home loan opt to refinance for a lower interest rate, or access their home’s equity to consolidate debt, pay for education, or use those funds to improve their home. If you are in this situation there are two types of refinance programs that you may want to consider:
- A Cash-Out Refinance – This loan type allows the borrower to take cash out of their property through refinancing an existing VA loan or converting a non-VA loan into a VA backed loan.
- Interest Rate Reduction Refinance Loans (IRRRL) – This program may be more commonly knows as a VA Streamline. IRRRL is meant to reduce the requirements and time associated with refinancing making the process quicker and easier. With this program service members or Veterans can refinance their current VA home loan to a lower rate (if available) or refinance an adjustable rate VA loan into a fixed rate loan.