What types of Home Loans are available?

Characteristics of a fixed rate VA Loan:

• The interest rate is fixed for the life of the loan (whether interest rates go up or down).
• Payments generally stay the same each month

Characteristics of an adjustable rate VA Loan:

• The interest rate is adjusted periodically by adding a margin to an index specified by the mortgage (a 1-year ARM adjusts annually).
• Payments generally fluctuate along with the interest adjustment.
• ARM’s have limits on the amount of interest adjustment that can be made in given periods and across the life of the loan.

More on VA Loans:

VA Loans are only guaranteed by the U.S. Department of Veteran Affairs; lenders make the loans to eligible veterans for the purchase, construction, or energy-saving improvement (approved by the lender and VA) of a home.

VA loans also have easier eligibility requirements than conventional loans, often lower closing costs, and more liberal terms (usually no down payment is required) up to $417, 000 however in some cases you may be able to go higher if you live in a high cost county.

The VA Loan allows a Veteran to not only purchase a home but refinance as well. Typically a Veteran will opt to refinance their VA Loan for one of two reasons. First to lower their interest rate on a current VA Loan (VA Streamline Refi). Second, to lower their interest rate from a different loan type to a new VA Loan (we call this a rate in term refi). Lastly, to pull cash out of their existing home for whatever purpose they would like (VA cash out refinance).

If you are eligible, the VA will issue a certificate of eligibility that you take to the lender when making application for your loan.