VA Loan Types and Benefits

Did you know there is a Streamline Refinancing Program, which allows veterans to refinance at little or no expense to them?

Also, you may be able to refinance a conventional or FHA loan over into a VA loan.

Individuals who qualify should certainly take advantage of the many benefits that a VA loan has to offer over a conventional loan. With a conventional loan, the loan is made AND secured by the lender.

A VA loan differs from this because it is made by the lender, but it is secured by the federal government, therefore bestowing many more benefits. However, VA loans are only available to veterans and qualifying members of the armed forces.
 

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VA New Home Loans

Use your VA loan to buy a home with no down payment. The Department of VA recently increased the Maximum Guaranty Amount for veteran home loans to as much as $729,750. VA mortgage loans can be guaranteed with no money down in most cases up to $417 thousand dollars.

An added bonus: No private mortgage insurance requirement with a VA guaranteed loan. VA home loans have more flexibility than you might think. While many use this benefit to purchase existing homes, there are many other applications.

Did you know you a VA home loan may be used to purchase and improve a home at the same time?

You may also use a VA loan to improve your existing home by increasing energy efficiency
 

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VA Refinance Loans

The VA even offers help for those looking to refinance. Don't investigate these benefits without asking for information about the interest rate reduction loan, part of something called the Streamline Refinancing Program, which allows veterans to refinance at little or no expense to them.

Also, you may be able to refinance a conventional or FHA loan over into a VA loan.

Benefits of VA vs. Conventional Loans: The specific benefits of a VA loan in comparison to a conventional loan are numerous. VA loans offer exceptional loan rates, often much lower than those of a conventional loan.

There is also no monthly mortgage insurance necessary for a VA loan, and the qualifying terms are much less stringent.  Additionally, VA loans require zero money down and are guaranteed for up to $417,000.
 

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Benefits of VA vs. FHA Loans

VA loans are only open to qualified veterans, and VA loans offer considerably more benefits than

FHA loans. For instance, VA loans require no down payment; they offer fixed, competitive interest rates, no matter the buyer's credit history; and they have limitations on closing costs.

VA loans have long amortization periods and afford the right to prepay the mortgage without penalty.

One of the biggest benefits of a VA loan is forbearance. This means that the federal government extends leniency to veterans experiencing temporary financial hardship.

* (Please check with your VA Mortgage Loan consultant on most current guidelines, loan specifics and benefits as in today's lending environment, these can change frequently) 

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