Types of VA Loans, Pensacola – Consider Your Options

April 29, 2021

Types of VA Loans, Pensacola – Consider Your Options

By Published On: April 29th, 2021Categories: Pensacola, Pensacola FL, VA Loan, VA Loan Lenders

VA loans, Pensacola, are a type of mortgage loan guaranteed by the U.S. Department of Veterans Affairs and issued by a private lender, such as a mortgage company, a bank, or credit union. If you are an active-duty military member, a veteran who meets the length-of-service requirements, or a surviving spouse of a service member who died in the line of duty, you can be eligible for this type of loan.

If you are indeed eligible, the next thing you need to know is the types of VA loans available. Depending on your unique situation, you may pick from the following options:

  • VA purchase mortgage – no down payment required; this can help you buy, build, or improve a home.
  • VA Cash-out Refinance – replaces VA or conventional mortgage with VA loan; an option to turn home equity into cash.
  • Interest Rate Reduction Refinance Loan (IRRRL) – Also called VA Streamline Refinance, it replaces current VA mortgage with VA loan to lower interest rate. You can pick this to refinance from adjustable to a fixed rate; it cannot cash out any home equity.
  • Rehab and Renovation Loans – Helps finance the cost of home improvements.
  • Native American direct loan (NADL) – Helps eligible Native American veterans buy, build, improve or refinance a home on federal trust land.

Some advantages of VA loans

Here are the notable advantages of VA loans, Pensacola compared with conventional and FHA loans:

  • No down payment or mortgage insurance required – While other loan types require a downpayment and can include an extra cost for mortgage insurance, you can apply for VA loans without putting money as a downpayment.
  • Interest rates are competitive – Average 30-year mortgage rates are lower for VA home loans than for FHA and conventional mortgages.
  • They have limited closing costs – Closing costs are the various fees and expenses you pay to get a mortgage. The Department of Veterans Affairs limits the lender’s origination fee to no more than 1% of the loan amount and imposes prohibitions on lenders from charging some other closing costs.

Online looking for a reputable company offering VA loans, Pensacola? Contact HomePlus Mortgage today at 800-810-PLUS (7587).