The Veterans Administration (VA) helps with home loans for people serving in the military, veterans, and surviving spouses who are eligible. Home loan funds come from lenders that are offered at favorable rates because the VA guarantees a percentage of the loan.
Eligibility for a VA Loan
To qualify for a loan guarantee from the VA, a person needs to have a Certificate of Eligibility (COE). A COE is issued depending on the service status of the person, the length of service already made, and the time commitment of any future service.
VA loans are available for personally-occupied homes lived in by veterans and for the spouse and any dependents, if the person is still in active military service. To qualify for a VA loan guarantee, a person must have a decent credit history and proof of income to pay for the monthly expenses.
VA Loan Benefits
Funds from loans guaranteed by the VA can be used to purchase a home or to take cash out from the refinance of a home. One serious advantage of a VA loan is the ability, under certain circumstances, to buy a home with a zero down payment and without having to pay for mortgage insurance. As the professionals at the OKavage Group to see if you qualify.
The VA offers a special loan program called the Interest Rate Reduction Refinance Loan (IRRRL) that is sometimes called a “streamline” refinance loan. The benefit of the IRRRL program is to take an existing VA loan and refinance it at a lower interest rate in order to reduce the monthly payments. Anyone with an existing VA loan should talk to a professional at the OKavage Group to learn if they may take advantage of this program.
Home Loan Refinance
Getting cash out from a home refinance loan allows the cash to be used for other things such as making a home renovation, paying tuition for school, or paying off other debts.