Housing Assistance for Veterans Available
The U.S. Department of Veteran Affairs administers VA housing assistance to help Veterans, service members, and their surviving spouses to buy a home or refinance a loan. They also provide benefits and services to assist them in building, improving, or maintaining your current residence.
VA direct and VA-backed Veterans’ home loans offer better terms than a traditional loan from a private bank, mortgage company, or credit union. With a VA Direct Home Loan, the department serves as a mortgage lender, meaning applicants work directly. If your VA-backed home loan goes into foreclosure, the guaranty allows the lender to recover some or all of their losses. Since there’s less risk for the lender, they’re more likely to give you the loan under better terms. In fact, nearly 90% of all VA-backed home loans are made without a down payment.
A cash-out refinance loan sponsored by the VA allows you to replace your current loan with a new one with alternative terms. A VA-Backed Cash-Out Refinance Loan may be perfect for you if you wish to take cash out of your home equity or refinance a non-VA loan into a VA-backed loan.
Applicants may be eligible for this type of loan if they meet all of these requirements:
- They qualify for a VA-backed home loan Certificate of Eligibility, and
- They meet VA’s—and your lender’s—standards for credit, income, and any other requirements, and
- They’ll live in the home you’re refinancing with the loan
On VA-Backed Purchase Loans, lenders provide competitive interest rates. This can assist you in purchasing, constructing, or improving a property, particularly if you do not wish to make a down payment.
Applicants may be eligible for a VA-backed purchase loan if they meet all of these requirements:
- They qualify for a VA-backed home loan Certificate of Eligibility (COE), and
- They meet our—and your lender’s—standards for credit, income, and any other requirements, and
- They will live in the home you’re buying with the loan
The Native American Direct Loan (NADL) program often has better terms than a home loan from a private lender (a private bank, mortgage company, or credit union). You may be eligible for an NADL if you’re a Native American Veteran or a non–Native American Veteran married to a Native American. An NADL offers many benefits, including:
- No down payment is required in most cases.
- No need for private mortgage insurance (PMI)
- Limited closing costs
- A low-interest, 30-year fixed mortgage
- A reusable benefit, which means you can get more than one NADL to buy, build, or improve another residence in the future.
- The ability to refinance a current NADL for a lower interest rate.
- The ability to borrow up to the Fannie Mae/Freddie Mac conforming loan limit on a no-down-payment loan in most areas
An Interest Rate Reduction Refinance Loan (IRRRL) is ideal for applicants that have an existing VA-backed home loan and wish to lower their monthly mortgage payments—or make their payments more consistent. Refinancing allows you to replace your existing loan with a new one with better conditions.
Applicants may be eligible for an IRRRL if they meet all of these requirements:
- They already have a VA-backed home loan, and
- They’re using the IRRRL to refinance your existing VA-backed home loan, and
- They can certify that you currently live in or used to live in the home covered by the loan
