Several different VA home loan types are available to veterans and, in many cases, the families of veterans. The variety of housing grants for veterans to choose from can be advantageous, as it provides applicants with many options, but it does mean the veteran or his or her family will have to do a little bit of research to find the best possible plan. To get help with home loans for veterans, applicants always have the option of visiting the nearest VA facility for assistance. While the VA is normally associated with just medical issues, there are legal experts as well who can help with VA home loan types and other issues. To learn more about home loans for veterans, please review the following sections:
- Mortgage servicing assistance
- VA home loans
- Interest Rate Reduction Refinance Loan (IRRRL)
- Native American Direct Loan
- Specially Adapted Housing Assistive Technology (SAHAT)
Learn About Mortgage Servicing Assistance
Home loans for veterans are not specifically provided by the VA. To deliver VA home loan types, the VA works alongside private lenders, most notably banks and mortgage companies. One of the VA home loan types, mortgage servicing assistance focuses on veterans who already have a home but are having a difficult time paying their mortgage and are in danger of foreclosure. In these home loans for veterans, the VA guarantees a portion of the loan, effectively allowing veterans to get better deals on loans for which they normally would not qualify. The VA will also provide guidance for the veteran, in many cases acting as a negotiating third party between the veteran and the loan provider. With these home loans for veterans, it is hard to predict how much the veteran will get from a loan, since so much is dependent on what type of mortgage the veteran has and how much assistance he or she needs.
Learn About VA Home Loans
The two primary VA home loan types include purchase loans and cash-out refinance loans. Of the two VA home loan types, a purchase loan is the simpler option. With a purchase loan, the VA directly helps with purchasing a home and finding a good interest rate, which is very helpful for any veterans who are struggling financially. Cash-out refinancing loans are meant for veteran homeowners who want to get cash out on their home equity. The reason veterans do this is to get money to pay off other debt or to cover school costs. VA refinance rates allow veterans to use their home equity to get fair loans that will not have high interest or penalties relating to paying off the loan.
In addition to their better VA refinance rates, these loans are much easier to get, and they disregard some of the loan requirements that banks and other lenders usually impose. Furthermore, it is possible that the VA will be able to offer some financial assistance for veterans who start to run into trouble while paying off their loans. There are also VA rules that set a limit for how much a veteran can be charged for closing costs on the house.
Learn About the Interest Rate Reduction Refinance Loan (IRRRL)
The VA IRRRL program focuses on reducing interest on home loans. Obtaining a lower interest rate is very important for veterans, since this has a direct impact on how much they have to pay every month on a mortgage. The VA IRRRL program has to be used in conjunction with a veteran home loan. In order to apply for the VA IRRRL program, veterans do not have to get any type of appraisal or credit check. Veterans are encouraged to contact at least a few different lenders when applying for a VA IRRRL, since lenders are going to have slightly different terms. It is also possible for veterans to use the VA IRRRL program to refinance an existing adjustable rate mortgage and have it become a fixed rate mortgage.
Learn About the Native American Direct Loan
As far as VA home loan types go, the Native American loan program is very specific. It applies only to Native American veterans who are interested in purchasing, building or improving on a home located on Federal Trust land. The veterans Native American loan program can also be used to refinance a previous Native American Direct Loan and get a better interest rate. Although it is a very specific program, the VA Native American loan program eligibility guidelines simply require the veteran applicant to be a Native American. The veterans Native American loan program has no down payments or private mortgage insurance costs associated with it. The program also has an excellent 30-year fixed rate mortgage. Anyone who uses the veterans Native American loan program will also have access to a dedicated VA staff member to help oversee the process.
Learn About the Specially Adapted Housing Assistive Technology (SAHAT)
One of the main reasons for housing grants for veterans is to meet the needs of veterans’ high-risk jobs. SAHAT is one of the housing grants for veterans that are designed specifically to assist veterans who have permanent disabilities from serving in the military. The program can help veterans that have an existing home, but it also provides assistance for veterans who are trying to purchase a new home.
These housing grants for veterans are split into two areas, Specially Adapted Housing (SAH) grants and Special Housing Adaptation (SHA) grants. SAH grants provide assistance for veterans who have disabilities but are still able to live independently. These housing grants for veterans are for building new homes, buying land for new homes, making changes to an existing home to account for disabilities the veteran received or getting financial assistance with an unpaid principal mortgage.
SHA loans are very similar, but they apply to veterans who have family members or need live-in assistance because of their disabilities. These housing grants for veterans allow the veteran’s own home to be adjusted, but it also allows a veteran to adjust a family member’s home, if he or she is intending to live with that family member to get assistance with a disability.