If you're a veteran, you may be wondering if you're eligible for a VA loan. The good news is that most veterans are eligible for this type of loan. In fact, the Veteran's Administration created a home loan program specifically for past and present military veterans. There are two types of VA home loans: purchase loans and refinance loans.
What are purchase loans?
Purchase loans are exactly what they sound like—they're loans that are used to purchase a home. If you're a veteran, you can use a VA home loan to purchase a house without having to put any money down and without having to pay private mortgage insurance. The program is for first-time homebuyers as well as those who have purchased homes previously. You can also use this type of loan to build a home or make repairs to an existing home.
What are refinance loans?
Refinance loans are loans that are used to pay off an existing mortgage. If you're a veteran and you already have a home, you can use a VA home loan to refinance your mortgage and get a lower interest rate. You can also use this type of loan to get cash out of your home equity.
Who is eligible for a VA loan?
In order to be eligible for a VA loan, you must meet some specific criteria. You must have served at least six months during peacetime or just three months during wartime. The program is not just limited to armed forces members, however. The spouse of a service member who was killed in action is eligible to apply for veteran loans. Also, members of the National Guard are eligible for VA loans.
Who cannot get a VA loan?
Please be aware that there are a few exceptions to who can get a VA loan. If you have been dishonorably discharged from the military, you are no longer eligible for veteran's benefits, including a VA loan. In addition, if you have defaulted on a previous VA loan, you may not be eligible for another one.
VA loans are a great way for veterans and military members to purchase or refinance a home. If you're thinking of using your VA loan benefits, be sure to talk to your mortgage lender about the options available to you. There may be special programs or interest rates that are perfect for your needs. Don't wait—get started today!
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