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Buy and cash Refinance home loans

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Buy and cash Refinance home loans

In their own words – What the house means

Since 1944, VA and private industry partners have helped fulfill the dream of owning generations of qualifying veterans, service members, and surviving spouses. Here the veterans describe how the benefit of the VA home loan has changed their lives and what the home means.


Buy loans: You can use your VA home loan benefit to buy or build a home that will be owned and occupied by you or an eligible dependent. Using your VA home loan benefit can help you buy a home at a competitive interest rate.

Refinancing loans received: You can use the cash out option to refinance an existing first mortgage on the home you currently own and occupy. This includes the refinancing of construction loans into permanent loans. You can refinance up to 100% of the appraised value. In many cases, borrowers want to use this product to turn their home equity into cash that can be used to improve their home, fund education, or pay off other debt.

About the VA Home Loan Guarantee

The VA Home Loan Guaranty program helps eligible veterans, military personnel and some surviving spouses obtain, maintain and adapt homes. The VA guarantee acts as a back-up from the government to insure part of your loan and help you in certain difficult circumstances. If you are having temporary financial difficulties, VA is ready to work with your maintenance agent to mitigate malfunctions, avoid foreclosures, and provide alternative options if your financial difficulties become long term.

Benefits of the VA home loan

The main advantages of using the VA home loan include:

  • No deposit if the sale price does not exceed the appraised value
  • The program allows borrowers to finance up to 100% of the value of the property
  • No private mortgage insurance required
  • Limits the amount the lender can charge you for closing costs
  • The lender cannot charge you a penalty fee if you prepay the loan
  • Provides assistance to veteran borrowers in default due to temporary financial hardship

You should also know that:

  • It is not necessary to be a first-time buyer to benefit from your mortgage.
  • There is no limit to the number of times you can use your VA home loan benefit.
  • The loans guaranteed by VA are assumable, as long as the person assuming the loan is eligible.

Remaining right

If you currently have a VA home loan, you can apply for a Certificate of Eligibility (COE) to determine if you are eligible to purchase your next home using the VA home loan benefit. The fee remaining available to those who have already used their VA home loan benefit is 25 percent of the county loan limit reduced by the amount of the fee previously used and unrestored. Just like the first use of the VA loan, you are required to make this home your residence when purchasing a home with remaining or reinstated entitlement. Examples of the calculation of the remaining rights are available here.

Learn more about VA home loans:

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