The VA Home Loan is the very best mortgage available today to those who have earned the benefit. When comparing the pros and cons of the VA Loan to both a conventional loan and an FHA loan you will quickly find out that the VA Loan cannot be beat.
VA Loans require 0% down payment in most cases whereas conventional loans generally require at least a 5% down payment and sometimes up to 20% required. FHA loans require a minimum of 3.5% down.
And with a VA loan, Veterans also do not have to pay any monthly mortgage insurance which cannot be said about a conventional or FHA mortgages.
The VA refinancing program allows qualified borrowers to lock in a lower monthly rate for the remainder of their VA Loan and/or take out cash from their home’s equity. But you must act quickly as interest rates are at historical lows!
There are a few different ways to lower your interest rate with a VA Loan Refinance, including a VA Streamline Refinance and a Cash Out Refinance. A VA Streamline Refinance, sometimes referred to as an IRRL, allows you to lower your current loan interest rate.
A Cash Out Refinance allows someone who currently has a VA Loan, and has built up equity to cash out part of the loan to pay off bills such as credit cards and/or auto loans.
Many veterans have already taken advantage of their VA loan benefits. With relaxed qualification standards and more flexibility, it is proven to be the right choice for many to purchase and refinance their homes through this program.
However, in most counties, the conforming loan limit with no money down is $417,000. When your home costs more than this, the solution is the VA Jumbo Loan.
A VA jumbo loan is any VA loan greater than $417,000. Qualifying veterans can apply to purchase or refinance their home for up to a value of $1,000,000 through this type of loan plus receive all of the benefits of the general VA loan.