One of the more lucrative options open to military active duty and veteran Servicemembers is the loan and housing programs that are open to them. They often qualify for attractive and competitive rates that are better than what is available to them on the commercial market. The programs that are available to active duty and Veteran Servicemembers through the VA have been expanded and improved in the last few years, and they serve to assist Servicemembers and their families in obtaining a home and a mortgage at a decent rate of financing.
Currently if a veteran qualified for the VA home loan program and wishes to purchase a manufactured home, a house, a condominium, or any of a number of different housing selections they can qualify for up to $417,000 dollars of financing on a government guaranteed housing mortgage. This is an excellent benefit for veterans looking to purchase a home, and with the federal government guarantee housing sellers and financing institutions often welcome the financing with open arms. There are some different selections, of which two main options are open for most veterans and their families who qualify:
Refinancing/Cash Out- This option exists if you want to realize some or all of your equity from your current home or housing loan. You use the VA home loan to pay off your first home loan, and then you realize the difference between the VA home loan and what it took to pay off your first home loan. This is an attractive option to many veterans, but the difference is limited to $144,000 dollars. This is an option that many Servicemembers are not aware of, but that would enable many Servicemembers, veterans and their families to have flexibility in achieving many of their financial life goals if they made use of this program.
Refinance- A qualified Veteran or Servicemember can choose to reduce their interest rate on their current loan by refinancing. This allows a Servicemember to use a VA home loan to pay off their existing loan, and avail them with a better interest rate of a VA home loan. This guaranteed home loan gives many veterans the option of trading in a high interest loan for an attractive government guaranteed low interest rate VA home loan. A Veterans Administration housing or home loan is one that can be used to make various improvements to an existing structure. All in all the programs with the VA are very flexible and it benefits a Servicemember to inquire and make full use of the programs, which they qualify for.