VA Loan Products We Offer
Generally speaking, most Veterans know that they can get a VA home loan. VA loans are typically for financing a primary residence. The Veteran will occupy the home (or the Veteran’s family will occupy, in the case of active-duty personnel stationed elsewhere). What you might not already know is that there is more than one type of VA loan available.
Here are the VA loan products we offer:
A VA purchase loan is exactly what it sounds like – a loan for the purchase of a home for a Veteran. VA purchase loans do not require a down payment or monthly mortgage insurance. The VA also imposes restrictions on the amount and type of closing costs that may be charged to a Veteran.
A VA refinance can be used to refinance an existing loan or multiple loans. Veterans can even pull cash out on a home that is currently owned free and clear of any mortgages. You can refinance up to 100% of the home’s value, as determined by a VA appraisal. Just like with purchase transactions, the amount and type of closing costs that may be charged to the Veteran are limited.
An Interest Rate Reduction Refinance Loan, or IRRRL, is a streamlined loan, specifically for refinancing a property on which you’ve already used your VA loan eligibility. An IRRRL does not require an appraisal. The occupancy requirement for an IRRRL is different from other VA loans. For an IRRRL, a veteran only has to certify that he/she previously occupied the home. Typically an IRRRL lowers the interest rate on the existing VA mortgage. However, if you are refinancing from an existing adjustable rate mortgage (ARM) to a fixed rate loan, the interest rate may increase. There is no cash back allowed to the veteran from the loan proceeds—they must be used to pay off the existing loan and cover the closing costs.
Use a Jumbo VA loan to purchase or refinance when the loan amount exceeds the conventional loan limits. Jumbo VA loans do not require a down payment. The amount of the down payment is determined using a calculation that factors in the county loan limits for the area the home is in, and the portion of the amount exceeding that loan limit which the VA will guarantee. Our expert mortgage bankers can explain the details on how much of a down payment would be based on your specific scenario. Typically, the amount of down payment required on a VA Jumbo loan will be significantly lower than what’s required on a conventional jumbo loan. VA Jumbo loans also do not require mortgage insurance, regardless of down payment amount, whereas conventional loans with down payments less than 20% always require mortgage insurance.
Now that you know what kind of VA loans are available, contact us today, or fill out the form below to get a conversation started about which loan is best suited to meet your needs.