Benefits of VA Home Loans

Woman Veteran shaking hands

Purchase Loans:

Offer a competitive interest rate without a downpayment of private mortgage insurance.

Cash Out Refinance loans:

Interested in paying off debt, making home improvements, or cashing in for school? This loan allows you to take cash out of your home equity.

Favorable terms for VA home loan qualifiers:

  • No down payment needed as long as the sales price doesn’t exceed the appraised value.
  • No private mortgage insurance premium requirement.
  • VA rules limit the amount you can be charged for closing costs.
  • The seller may pay closing costs.
  • The lender can’t charge you a penalty fee if you pay the loan off early.
  • VA can assist you if you run into difficulty making payments.

Other helpful information:

  • You don’t have to be a first-time homebuyer.
  • You can reuse the benefit.
  • VA-backed loans are assumable as long as the person assuming the loan qualifies.

Interest Rate Reduction Refinance Loan (IRRRL):

The Streamline Refinance Loan can help you obtain a lower interest rate by refinancing your existing VA loan.

Need to know information:

  • No appraisal or credit underwriting package is required when applying for an IRL.
  • An IRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the expenses.
  • The interest rate may increase when refinancing from an existing VA ARM loan to a fixed-rate loan.
  • No lender is required to give you an IRRRL. However, any VA lender you choose may process your IRRRL application.
  • Veterans are strongly urged to contact several lenders because terms may vary.
  • You may NOT receive any cash from the loan proceeds.

Native American Direct Loan (NADL) Program:

Helps eligible Native American Veterans finance the purchase, construction, or improvement of homes on Federal Trust Land or reduce the interest rate on a VA loan.

Adapted Housing Grants:

Help Veterans with a permanent and total service-connected disability purchase or build an adapted home or modify an existing home to account for their disability.

  • Construct a specially adapted home on land to be acquired.
  • Build a home on land already owned if suitable for specially adapted housing.
  • Remodel an existing home if it can be made suitable for specially adapted housing.
  • Apply for the grant against the unpaid principal mortgage balance of an adapted home already acquired without the assistance of a VA grant.


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