2017 VA Loan Programs

This BLOG On 2017 VA Loan Programs Was Written By Gustan Cho

There are many VA Loan Programs that is available for Veterans of the United States Military who have a Certificate of Eligibility. VA Loan Programs are for Veterans with valid Certificate of Eligibility, often referred to as COE. Here are the benefits for VA Loan Programs:

  • Veterans with COE who are first time home buyers
  • Veterans with COE who are seasoned homeowners selling and buying a new home
  • Veterans who are homeowners who plan on doing a 100% cash out refinance on their existing home
  • Veterans who are homeowners who are planning on refinancing their current home for a lower interest rate so they can lower their payments
  • Veterans who are disabled Veterans who need to make their current home accessible for their disability

About VA Loans

VA Loans is the best mortgage loan program in the United States where no down payment is required on a VA home purchase loan and the mortgage rates are extremely competitive. VA Loans also does not have mortgage insurance requirement like other loan programs. However, VA Loans are limited to Veterans with a valid Certificate of Eligibility or COE. Here are the benefits of VA Loan Programs:

  • No down payment is required
  • VA Loan Programs is available for only owner occupant primary homes only. Second homes and investment homes does not apply
  • You can buy a single family home, condominium, town home, and two to four unit property with a VA Loan
  • Veteran homeowners with a valid COE can refinance their current home mortgage with a VA mortgage loan
  • You can do a 100% cash out refinance on a single family home with a VA Loan

Home Purchase VA Loan Programs

Home Purchase VA Loan Programs allow Veterans with a valid Certificate of Eligibility to purchase an owner occupied primary single family home, condo, town home, or two to four unit property with zero down payment. A VA Loan is one a great benefit only Veterans get for their service to their country where others do not get this privilege. Other great benefits of VA Loan Programs are the following:

  • VA Loans do not require mortgage insurance premiums like FHA Loans or Conventional Loans where the loan to value is greater than 80% LTV
  • VA Loans do have a one time VA Funding Fee but the VA Funding Fee can be rolled into the VA Loan balance
  • VA Loans offer the lowest interest rates, even lower than Conventional Loans
  • VA Loan Limits are the same as those of Conventional Loans
  • VA loans can be reused over and over for home buyers and are not just limited to a first time VA home buyer
  • VA allows sellers concessions of up to 4% to home buyers so a VA borrower can purchase a home with absolutely zero money out of pocket with the combination of no down payment for the home purchase and no closing costs because closing costs can be covered by sellers concessions and/or lender credit
  • VA Loans are assumable

Refinance VA Loan Programs

There are two types of Refinance VA Loan Programs

  • Cash Out Refinance VA Loan Programs
  • Interest Rate Reduction Refinance Loan VA Loan Programs which is also commonly referred to as IRRRL

Cash Out Refinance VA Loan Programs

The VA Cash Out Refinance program allows Veterans with a valid COE to do a cash out refinance loan with a VA Loan. Here is how Cash Out Refinance VA Loan Programs work:

  • Your existing mortgage does not have to be a VA Loan
  • You need to meet all VA Lending Guidelines
  • VA allows up to 100% LTV cash out refinance
  • VA borrowers will be hit with a VA Funding Fee for refinancing but the VA Funding Fee can be added on to the VA Loan balance
  • Borrowers can do anything they need to do with the cash out from the VA refinance mortgage such as go on vacation, pay down a second mortgage or HELOC, do remodeling to their home, purchase a car, consolidate debts, use the funds for investments, pay down credit card debts, or purchase a second home

What Is The VA Interest Rate Reduction Refinance Loan Or IRRRL?

The VA Interest Rate Reduction Refinance Loan Program, also referred to as IRRRL, is a Streamline Refinance VA Loan Program that is only available for homeowners who already have a current VA Loan and want to refinance their VA Loan into another VA Loan with limited documents to lower their VA mortgage rates thus reducing their monthly VA mortgage payment. Veterans with an existing fixed rate VA mortgage can refinance into another lower rate fixed rate VA Loan or Veterans with an adjustable rate mortgage, ARM, can refinance their ARM VA Loan into a fixed rate VA Loan.

Here are how Interest Rate Reduction Refinance Loan Programs work:

  • The current loan needs to be a VA Loan. IRRRL needs to be a VA Loan being refinanced into a new VA Loan where the borrower has already used a VA entitlement
  • A new VA home appraisal is not required with IRRRL
  • No credit scores are necessary and the only thing required is that the current VA mortgage has been paid on time. 12 months on time payments on the current VA mortgage is required
  • You can only do a rate and term refinance and cash out VA refinance is not permitted
  • Certificate of Eligibility: A new COE is not required on a IRRRL
  • No money out of pocket is required by the Veteran homeowner. Closing costs can be rolled into the new VA Loan or a lender credit can be given
  • Funding fee is .05% on a IRRRL

If you are interested qualifying for a VA Loan, please contact Gustan Cho at 262-716-8151 or email gcho@gustancho.com. We have no lender overlays on VA Loans and the only requirement is 580 FICO credit scores. We just go off the automated finding per Automated Underwriting System. We are available 7 days a week, evenings, weekends, and holidays to take your VA Loan inquiries.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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