Are you considering a VA home loan or refinance loan in 2017? It’s never too early to enter into the planning stages for a new home loan or refinance, but knowing your options ahead of time can be a very big help.
VA mortgage loans have a variety of options starting with the type of property you’re able to buy using this important VA benefit. While it’s true that many think of typical suburban homes as the primary “target” of a VA mortgage, you can also buy eligible condo units, town homes, manufactured housing/mobile homes, even a farm home. (Farm home purchases would be limited to the residential value of the home and do not include funds for business purposes.)
But in addition to the variety in the types of property you can purchase, there are also options with the type of mortgage you get, too.
VA home loans feature fixed-rate mortgages, but also Adjustable Rate Mortgages, Graduated Payment Mortgages, and Growing Equity Mortgages. Getting into a VA mortgage that is not fixed-rate may require some additional research and planning as these options are great for borrowers who have specific financial goals. These options are open to qualified borrowers and require the participation of the lender.
Not all lenders offer all VA mortgage products; some may not wish to underwrite mobile homes or non-stick built housing. It’s best to have a conversation with your loan officer prior to decision time on these options.
Your VA loan options also include refinancing and there are a few misconceptions about VA refinance loans that are good to clear up before planning your new loan application. For example, if you have a convention or otherwise non-VA mortgage, you are still free to apply for VA refinancing. VA refinance loans that are “non-streamline” mortgages can be used for conventional loans and other non-VA purchases.
The option to refinance into a VA mortgage includes potentially lower interest rates thanks to the VA loan guarantee provided to the lender, so it’s important to keep this option in mind if you have an existing non-VA mortgage.
Another misconception about VA refinancing? That you must use the same lender you applied for your original loan with; this is not true. A potential VA borrower can use any participating lender to refinance VA-to-VA, conventional-to-VA, etc. Talk to a loan officer today about your options in this area.