VA Loan Uses
VA Loans are hugely beneficial for veterans. They have many qualities that make them far better than conventional loans. For starters, you can purchase a house up to $417,000 with absolutely zero down payment. In some counties it is even possible to buy a house for over a million dollars without a down payment. In addition to the incredible affordability upfront, your monthly payments are much lower because you don’t have to pay private mortgage insurance. Finally, because the VA makes it so secure for a lender to issue the money to you, you can often negotiate a much lower interest rate than the current market price.
VA Loans are primarily used by veterans to purchase single-family homes, but this is not the only thing you can use it for. Here are the following applications you could use your VA Loan guaranty for:
1. For the purchase of a single family home, condo or townhouse.
2. To build a new house as the primary residence of the veteran.
3. To build a house and renovate it at the same time. The money from the loan can also be used to make repairs.
4. To make upgrades or repairs that affects the energy efficiency of the home. This includes, but is not limited to, solar panels, solar heating and cooling, storm windows and doors, water insulation, home insulation, caulking and more. These upgrades can be added to the loan of a new house or rolled into a new loan on an existing house when refinancing. A house with a VA Loan is eligible for a refinance of up to 90% of the appraisal value of the property.
5. To refinance an existing home for up to 90% of the appraisal value. The new loan can be to either take cash-out against the house’s equity or to obtain a lower interest rate.
6. To purchase manufactured homes or lots.
When it comes to VA Loans, you have many options regarding how you want to use the money. Not only do you have multiple options, but the benefits of going through the VA are numerous as well. With no down payment, no monthly insurance and low interest rates, VA Loans are much more affordable than conventional loans. Be sure to submit an eligibility form with the VA to establish whether you qualify first. Then, find a lender so you can get pre-approved today and start house hunting!
How to Get Started Today
It’s never been easier to get started with a VA refinance. Simply fill out our secure 1-minute quote request form and start comparing rates today.