The Complete Guide to VA Loans
You may be able to get a home with the aid of a VA loan, but before you apply, you should know the loan requirements, consider your eligibility, and determine if this program is a good fit for you. Here is everything you need to know about VA loans. And when you’re ready, contact one of Supreme Lending’s Houston mortgage professionals to discuss home financing options.
What Is a VA Loan?
A Veterans Affairs loan, often known as a VA loan, is a mortgage loan provided by a private lender but guaranteed by the U.S. Department of Veterans Affairs to aid veterans in obtaining credit and competing in the housing market. VA home loans are available to eligible veterans and their surviving spouses who haven’t remarried. Although it doesn’t make or originate loans, the VA backs a percentage of each one against default. VA loans also offer competitive loan rates compared to conventional home loans.
Types of VA Loans
Whether you are purchasing your first home or interested in refinancing your current mortgage, there are several types of VA loans available to meet your needs:
- VA home mortgage: Often called a VA purchase loan, a VA home mortgage allows qualified military members to buy a home with no minimum down payment.
- VA construction loan: This loan can be used by qualified military personnel to construct their home.
- VA streamline refinance loan: With this loan, service members can switch from a VA mortgage to a VA Interest Rate Reduction Refinance Loan (IRRRL), which may provide reduced interest rates. It can also be used to go from an adjustable-rate loan to a fixed-rate loan.
- Cash-out refinance loan: This loan allows you to replace your current loan with a loan with more favorable terms or you can withdraw cash from your home equity. You can also convert a non-VA loan into a VA-backed loan.
- Native American Direct Loan (NADL): Native American veterans and veterans married to Native Americans can use this loan to help them buy, construct, improve, or refinance a home that is situated on land held by the federal trust.
What Are the Eligibility Requirements To Qualify for a VA Loan?
The VA has specific eligibility criteria to qualify for a VA-backed loan. In general, you:
- Must have completed at least 90 days of active-duty service.
- Must have served in the Reserves or National Guard for at least six years.
- Must have served at least 181 days of active-duty service during peacetime.
- Must have 90 days of cumulative service under Title 10 or Title 32. Under Title 32, you must have served at least 30 days consecutively during the 90-day period.
- Must be the surviving spouse of a military service member who died in the line of duty or suffered a disability as a result of their duty.
Supreme Lending is your experienced and committed Houston mortgage lender, whether you’re thinking about a VA home loan to buy or build your first house or an FHA 203(K) REHAB Loan to renovate your current home. Through every step of the home financing process, we’ll be by your side.