VA loans are the premier loan product for the military. Because the United States Department of Veterans Affairs (VA) guarantees a part of the loan, lenders like Homeowners Mortgage, can provide more favorable terms to those who qualify. In order to provide members of the military with the types of solutions that best meet their financing needs, the VA offers a number of different loan options.
With a purchase loan, the VA provides military members with a competitive interest rate that has the potential to save them thousands of dollars over the course of the loan. In addition, there are often instances when these loans are provided without requiring a down payment.
Cash-Out Refinance Loans
This type of VA-backed loan is designed for those homeowners who need extra cash to meet their financial needs. By tapping into the home equity that is built up in their home, military members can finance home improvements, a college education, or pay off debt -- all at attractive interest rates. It is also possible to use this type of loan to refinance a current non-VA loan in order to take advantage of the more competitive rates offered by a VA loan.
Interest Rate Reduction Refinance Loan (IRRRL)
Also referred to as a Streamline Refinance Loan, these lending vehicles provide members of the military with the option to refinance their current VA loans to obtain better interest rates. One of the stipulations of this loan is that it can only be used for a VA loan that has already used any VA loan eligibility that was available. Refinancing should save the service member money on their mortgage payment each month.
Because the VA rarely becomes involved in the application process for VA loans, Homeowners Mortgage is the ideal place to obtain information and begin the application process.