VA loans allow borrowers to buy, refinance and even build homes. Here’s a look at some VA loan offerings.
VA purchases with no down payment
The VA loan is the only government-backed loan program that requires no money down with no income or loan limits.
VA cash-out refinances
Eligible borrowers can tap equity up to 90% of their home’s value with a VA cash-out refinance, which is 10% higher than conventional or FHA cash-out refinances allow.
VA interest rate reduction refinance loans (IRRRLs)
Homeowners with a current VA loan may be able to lower their interest rate and roll in closing costs with a VA interest rate reduction refinance loan (IRRRL). An added bonus: No appraisal or income verification is required.
VA renovation loans
Military borrowers can take out a VA renovation loan to purchase or refinance a fixer-upper home and roll repair or remodeling costs into the loan. You can finance up to 100% of the home’s value, which is more than most renovation programs allow.
VA construction loans
The VA offers one-time and two-time close construction loans to finance the cost of building a new home with no down payment. With the one-time close option, one loan covers the construction costs automatically converts to the permanent loan once the home is complete. The two-time close involves one dedicated construction loan, followed by a new loan taken out to pay off the construction loan.
VA supplemental loans
Current VA borrowers can finance smaller home maintenance projects with a supplemental VA loan. Repair costs are added to the balance of your current loan or taken out as a separate loan.
Other VA loan programs
The VA offers special housing grant programs for veterans with service-related disabilities and for Native American service members.
Housing grants for disabled veterans. Disabled veterans can use a Specially Adapted Housing (SAH) grant up to $90,364 to make changes to a home they’re buying or refinancing to upgrade it so it meets their independent living needs. A veteran who lives with family members can use a Temporary Residence Adaptation (TRA) grant of up to $39,669 to alter a home they live in but don’t own.
Native American Direct Loans. Native American veterans, or military borrowers with Native American spouses, may be eligible for the Native American Direct Loan (NADL). Borrowers can use the loan to buy, build or improve a home on federal trust land with no down payment.