Buying a home can be challenging and it doesn’t matter whether you’re a newbie or a seasoned homebuyer. This is because all the paperwork and financial responsibilities can be quite complicated, especially when choosing the best loan for you.
For veterans, qualifying veteran spouses, and active duty service members, you’ll be happy to know that you have access to affordable housing and mortgages thanks to VA loans. VA loans are backed by the Department of Veteran Affairs, giving you the benefit of borrowing funds without the need for putting a downpayment, helping you avoid mortgage insurance.
If you’re considering getting a VA loan, it’s best to speak to a reliable mortgage broker to ensure you’re getting all the information you need to know which loan will work best for you. To learn more about the different types available, read on. Here’s everything you need to know:
Can I Get a VA Loan?
To qualify for a VA loan, you must meet certain criteria, such as:
- Being an active member of the military or you’re a veteran who meets the minimum length-of-service requirements;
- Being a surviving spouse of a veteran who died while on active duty or has sustained a disability due to service;
- You can meet your lender’s chosen credit and income requirements;
- The property you wish to purchase will be your primary residence;
- Receive a VA certificate of eligibility that verifies your status as a qualifying service member or surviving veteran spouse.
What Are the Different Types of VA Loans Available?
- VA Purchase Loan: A VA purchase loan is a standard mortgage that allows a buyer to purchase a property with a $0 down payment. If you obtain this loan, you get to secure better mortgage terms from your lender;
- VA Cash-Out Refinance: With a VA cash-out loan, you can take 100% of your home’s equity for medical bills, pay a family debt, education, home improvements, and more;
- VA Interest Rate Reduction Refinance Loan (IRRRL): With a VA IRRRL, you can reduce your monthly mortgage payment on your existing home loan by modifying your interest rate to a lower amount. With this, you can also enjoy greater stability when you switch to a fixed-mortgage rate which could be done with a VA IRRRL;
- VA Native American Direct Loan (NADL): If you’re a Native American native, you can obtain a VA NADL, which allows you to buy, build, and improve your home situated on federal trust land. Besides that, you can also refinance your current NADL loan, enjoy limited closing costs, and eliminate private mortgage insurance.
VA Renovation Loan: Finally, you can obtain funds to purchase and renovate a property with the VA renovation loan. This loan is similar to a traditional VA loan as it’s designed to support alteration and home repairs.
What Do I Need to Consider When Choosing a VA Loan?
Different VA loans come with their own pros and cons. So when you’re deciding to get a loan, understand what motivates you — do you want to purchase a home, seek refinancing, or do you want to make home improvements? When you know what you’re seeking, you can find a mortgage broker who can offer you favorable rates and suggest the best VA loan program for your goals.
The Bottom Line: Choosing the Right VA Loan for You
Seeing as there are a bunch of VA loan types to choose from, getting assistance from a mortgage broker can help you narrow down your selection and find a loan that’s favorable for you.
How Can New Frontier Financial Help You?
Are you looking to get a VA loan in Dallas? If so, look no further because New Frontier Financial can help you. We are a full-service mortgage broker service, and we can help you achieve your goal to buy or refinance a home or invest in real estate in Texas.
If you’re looking for mortgage brokers in Dallas, TX, give us a call at (469) 886-8300 today!