VA loans were created in 1944 by the United States government to help supplement service members returning from their lengthy service.
VA Loans enable veterans to purchase homes without requiring down payments or excellent credit scores.
Having been in existence for more than 73-years to date, the VA Loans programs has guaranteed more than 22 million VA Loans to active-duty service members, as well as their families.
What Types of VA Loans are Available?
There are 5 different types of VA loans:
HOME PURCHASE – A home purchase VA loan can be used to purchase a home or condo in a VA-approved development. It can also be used to build a new home.
CASH-OUT REFINANCE – This refinance replaces our mortgage with a new loan so that you can pay off debts or make home improvements. This can also be used to replace a non-VA home loan with a VA home loan.
INTEREST RATE REDUCTION REFINANCE LOAN – This loan is also used to refinance and can be used to replace an existing VA loan with a lower interest rate or move from an adjustable rate loan to a fixed interest rate.
NATIVE AMERICAN DIRECT LOAN PROGRAM – The specific VA loan helps qualified Native American veterans to buy, build, improve, or refinance a home on federal trust land.
ADAPTED HOUSING GRANTS – This loan is specific to veterans with service-related disabilities. This loan can help them purchase, build, or modify a home to better fit their needs.
How Can a VA Loan Help Me?
The VA program is more important than ever today, as lenders nationwide have tightened their lending requirements following the collapse of the national market in 2008.
During that time, VA Loans became a critical lifeline for military homebuyers, many of whom were shut out of the buying process with insurmountable credit standards and lofty down payment requirements.