Securing or refinancing a home loan can be a significant step toward financial freedom. Eligible veterans can apply for mortgages and refinance loans with special benefits through the Department of Veterans Affairs.
Explore the types of loans and find out whether you might qualify for this VA program.
Purchase loans
Purchase loans are the most common type of VA home loan. You can potentially buy a home with favorable terms. This mortgage offers competitive interest rates and does not require a down payment.
Interest rate reduction refinance loans
Also called an IRRRL, this loan lets you refinance an existing mortgage for a lower interest rate. This program aims to reduce monthly home payments for qualifying borrowers.
Native American Direct Loan program
The NADL program helps Native American veterans and their spouses purchase, build or improve homes on federal trust land. This program offers competitive interest rates and does not require a down payment.
Adapted housing grants
The VA offers these grants for veterans with service-connected disabilities. If you have special needs, this program could help you buy or modify an adapted home to improve accessibility and improved quality of life.
Cash-out refinance loans
These loans allow eligible individuals to refinance their existing mortgage, taking out cash in the process. You can use the funds for various purposes, such as home improvements or debt consolidation.
The VA guaranteed more than 400,000 mortgages in 2023 alone. To qualify for a VA home loan, applicants need a Certificate of Eligibility issued by the VA. Depending on the type and date of service, you must have a minimum number of years of active duty. You must also meet the bank’s credit and income criteria for the loan.