What’s a VA Loan? Challenges Concerning VA FinancingSeptember 7, 2023
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The Department of Veterans Affairs (VA) offers various loans to veterans, eligible military personnel, and other qualified individuals. These loans help veterans and their families buy, refinance, or improve their homes.
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Different Types of VA Loans
VA Home Loans
VA Home Loans are the most common type of VA loan. These loans make homeownership more affordable for eligible military personnel. They can get loans with low down payments or no down payment. The closing costs are also lower, and the credit requirements aren’t as strict.
Reduced Interest Rate Refinancing Loans (RRL)
IRRRLs or VA Streamline Refinance loans allow veterans to refinance their existing loans at a lower interest rate. It’s also less hassle on their part because they require less paperwork and no due diligence in most cases. The main goal of this type of VA Loan is to reduce monthly mortgage payments.
Cash-out refinancing allows qualified homeowners to refinance their existing VA or non-VA loans. Along with that, the loans have a cash remainder the borrower can keep. Borrowers can use the money for a variety of purposes, such as home improvements, debt settlement, or other financial needs.
Native American Direct Loan (NADL) Program
The NADL program backs the purchase, construction, or improvement of housing on federal trust land for qualified Native American veterans. It also reduces the interest rate on an existing VA loan.
Adaptable Housing Grants
Eligible personnel with service-related disabilities can adapt their homes to fit their unique needs. There are two main grant programs: the Special Adaptation Housing Grant (SAH) and the Special Adaptive Housing Grant (SHA).
Energy Efficiency Mortgage (EEM)
The EEM allows eligible borrowers to finance energy efficiency improvements to their homes. The EEM potentially reduces energy bills and improves the value of the home.
Joint VA Loans
Joint loans mean multiple qualified co-borrowers, such as veterans and spouses, can use the VA loans.
VA Construction Loan
These loans are to finance the construction of a new home. Like conventional construction loans, approval is usually more difficult than a home loan. VA construction loans also require the borrower to work with an accredited builder.
This article is for information purposes only. Please consult an approved VA lender or contact the VA directly to learn more.
VA Loan Experts in Flathead Valley
Are you planning to use a VA loan to buy a home in the Flathead Valley? Click here to contact Big Sky Living. We have the expertise to help you navigate the process.
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