VA Loan Types
The Veteran’s Administration backs three different types of loans, each designed to assist either new homebuyers or existing homeowners.
- Purchase Loans—This loan is made for the purchase of a home at competitive interest rates.
- Interest Rate Reduction Refinance Loan, (IRRRL)—This is also referred to as a VA Streamline Refinance Loan. The IRRRL allows service men and women the opportunity to refinance an existing VA home loan, for better interest rates and terms. The loan is particularly attractive since no proof of income or bank statements are required to qualify.
- Cash-out Refinance—This type of VA loan allows the borrower to refinance the existing mortgage and take cash out of the equity in the home. This can be used to make home improvements, pay off debt, or make a large purchase, etc. The VA’s Cash-Out Refinance Loan can be used to refinance a conventional home loan into a VA loan as well.