VA

Department of Veterans Affairs (VA) Home Loan Program

The main purpose of the VA loan program is to help veterans finance the purchase of homes with favorable loan terms.

The veteran will be able to obtain financing in most cases at a very favorable fixed rate and terms. For VA housing loan purposes, the term “veteran” includes certain members of the Selected Reserves, active duty service personnel, and certain categories of spouses. We have listed information on the streamline refinance program for existing VA homeowners. For more information on the VA program, please visit with one of our mortgage specialists.

Acceptable Uses for VA Loans

  1. To buy a home.
  2. To build a home.
  3. To simultaneously purchase and improve a home.
  4. To improve a home by installing energy-related features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors, or other energy efficient improvements approved by the lender and the VA. These features may be added with the purchase of an existing dwelling or by refinancing a home owned and occupied by the veteran. Check with us for details.

VA Streamline Refinances

VA has permitted streamline refinances on insured mortgages since the early 1980s. The streamline refers to the amount of documentation and underwriting that needs to be performed by the mortgage company and does not mean that there are no costs involved in the transaction.

The basic requirements of a streamline refinance are:

  • The mortgage to be refinanced must already be VA-insured.
  • The mortgage to be refinanced should be current (not delinquent).
  • The refinance is to result in a lowering of the borrower’s monthly principal and interest payments.
  • No cash may be taken out on mortgages refinanced using the streamline refinance process.

Generally, it is best to go with the option that offers the lowest cost rather than the lowest rate.