Veterans have various VA loan options available to them. One of the best is the VA guaranteed home loan program. This program is one where private lenders (such as savings and loans, mortgage companies or banks) loan money to eligible Veterans, and the money is guaranteed by the government.
For the purchase of a condominium, manufactured home, or home a veteran can have up to $417,000 dollars of the loan guaranteed. This is a good benefit for most Veterans in looking for a home. This amount is significantly higher than one can get with conventional home loans. For purposes of an existing loan or refinancing, the VA has two options for Veterans.
Refinance: You can reduce your interest rate by refinancing. This is great for loans you may have gotten on your home, the advantage of the VA guaranteed loan would allow many veterans to eliminate a high interest rate loan that they may have, replacing it with a refinance using a VA home loan at a much reduced rate.
Cash Out Refinance: This is an option if you wish to take some or all of your equity from an existing home loan. You refinance and get a portion or all of the equity difference after taking care of the other loan, in the form of a check from the VA. Such a cash out refinance option is limited to $ 144, 000 dollars.
The nice thing about the option of using a VA guaranteed home loan is lenders find it attractive. The guarantee of the government stands behind the loan. With the guarantee you get a legal mortgage document that pledges the property and a promise from the Federal government to the lender. It guarantees the loan to the lender for possible non-payment, and protects the lender against default. A Veterans Administration home loan can help:
-Build a home.
-Repair, improve or alter a home.
-Buy a residential Condominium, or a home.
-Install weatherization or home heating or cooling systems, including solar.
-Buy a manufactured home, with or without a lot, or buy and improve a manufacture home.
-Refinance a manufactured home loan to acquire a lot.
-Refinance an existing VA home loan to reduce the rate.
The VA home loan program helps both the Veteran and protects the lender. There are additional protections too. If a lender is found to discriminate or take unfair advantage they can be declared ineligible and suspended from the program.