Types of VA Loans

Veterans and service members can use the VA loan to purchase new or existing homes with $0 down payment. VA purchase loans also allow Veterans to buy single-family homes, condominiums, manufactured homes, multiunit properties (like a duplex), and even new construction. Policies and guidelines can vary by lender. Some lenders may not make all of these types of VA purchase loans. HELOC:

This is one of the VA loan program's two refinance options and the one most Veteran homeowners choose.These are also known as VA Streamlines, and that's because they're simple, low-cost refinance loans that in some cases might not require credit underwriting, income verification or an appraisal.The VA IRRRL is only for Veterans who currently have a VA loan, require your new rate is smaller than your old rate, and have a limit on the time it takes to recoup the costs and fees. All of which help ensure Veterans realize the full financial benefit.

This loan type allows qualified homeowners to refinance their mortgage and take out cash from their home's equity, or HELOC (to access equity without touching your first lien mortgage). These loans are open to veterans with and without current VA loans. You can typically refinance up to 90% of your home's value. Lending guidelines and loan-to-value requirements can vary by lender. Homeowners are not required to take out cash with these loans, which means veterans with non-VA mortgages can use this option as a basic rate-and-term refinance.

A VA renovation loan provides you with the opportunity to purchase and/or improve a home with the convenience of a single mortgage. This type of loan can be particularly beneficial for those looking to buy homes that need significant repairs or updates, allowing them to create their ideal living space, or for folks looking to renovate a home they currently own. Examples of eligible renovations are things like (but not limited to) roof repairs or replacement, plumbing and electrical system upgrades, kitchen and bathroom remodeling, flooring replacement, structural repairs, and energy-efficient improvements.

Sometimes finding the perfect home means building the perfect home. Construction loans cover costs including land, materials, labor, equipment, contractor and permit fees, architectural and engineering fees, and more. You'll want to select a VA-approved builder to construct the home. The loan may be structured to disburse funds in stages as construction progresses, ensuring funds are available at different stages of building. Once construction is complete, the loan typically converts to a permanent VA mortgage. This conversion process often involves requalifying for the loan under permanent loan terms.