when borrowers apply for a loan they need to provide the lender with a certificate of eligibility from the va to get the certificate you ll have to produce service related documentation which can vary based on whether you are active duty or a veteran the certificate can be obtained from the va website although some of the lender s own underwriting requirements still must be met in most cases va loans are easier to qualify for than conventional loans 2
va loans federal housing administration fha loans and other loans insured by departments of the united states government have securitization through the government national mortgage association gnma also known as ginnie mae these securities carry the guarantee of the u s government against default borrowers can apply for a va loan more than once but the funding fee increases when using a va loan after your first time if the down payment is less than 5 fees range from 1 4 to 3 6 of the loan amount 3va loan termsthe terms of va loans are quite generous compared to other mortgages and even to other federal loan programs among the benefits 1credit score minimum requirements differ slightly from lender to lender the va s only credit requirement is for the borrower to be considered a satisfactory credit risk by a lender the benefits of a va loan are the same no matter which lender you choose 4types of va loansthe va offers several types of mortgage loans va home purchase loans help veterans to buy a home at a competitive interest rate these purchase loans often do not require a down payment or private mortgage insurance cash out refinance loans allow mortgage holders to borrow against home equity to pay off debt fund school or make home improvements this refinancing option offers a new mortgage for a larger amount than the existing note and converts home equity into cash 5the va also offers adapted housing grants these grants help veterans with a permanent and total service connected disability to purchase or build an adapted home or modify an existing home for their disability 6interest rate reduction refinance loans irrrls also known as va streamline refinance loans help borrowers obtain a lower interest rate by refinancing an existing va loan this is a va loan to va loan process that allows homeowners with an existing va loan to refinance a fixed rate loan at a lower interest rate or convert an adjustable rate mortgage arm into a fixed rate mortgage 7the native american direct loan program helps eligible native american veterans finance the purchase construction or improvement of homes on federal trust land reductions in interest rates also come with these loans 8