E360 MORTGAGE

VA Loans

What is a VA Loan?

A VA loan is a mortgage loan program established by the U.S. Department of Veterans Affairs to assist military veterans, active-duty service members, and their families in purchasing homes. The program was created to offer favorable loan terms and eliminate the barriers many face when trying to buy a home, such as a large down payment or high-interest rates.

Benefits of a VA Loan

  • No downpayment
  • Competitive Interest Rates
  • No Private Mortgage Insurance (PMI)
  • Easier Qualification
  • Limited Closing Costs
  • Refinance Options

Who is Eligible for a VA Loan?

Active Duty Service Members

You must have served a minimum length of time in the military, typically 90 continuous days of active service.

Veterans

If you have served in the military during wartime or peacetime and were honorably discharged, you may be eligible.

 

Surviving Spouses

Surviving spouses of veterans who died as a result of service-related injuries or a service-connected disability may be eligible for a VA loan.

National Guard and Reserves

Members of the National Guard and Reserves may be eligible for VA loans after completing six years of service or being called to active duty for a certain period of time.

Note: Eligibility may vary depending on the type of service and duration of service. To determine eligibility, you can apply for a Certificate of Eligibility (COE) through the VA.

Types of VA Loans

There are different types of VA loans available, depending on your needs. Some common types include:

1. Purchase Loan

A standard VA loan used to purchase a new home, typically with no down payment required.

2. Cash-Out Refinance Loan

Allows veterans and active-duty service members to refinance their current mortgage, take out cash, and use it for other expenses.

3. Interest Rate Reduction Refinance Loan (IRRRL)

Also known as the VA Streamline Refinance, this loan is used to lower the interest rate on an existing VA loan.

4. Native American Direct Loan (NADL)

A specialized VA loan for Native American veterans or those who have a direct connection to a Native American tribe, used to buy, build, or improve a home on trust land.