Types of VA Loans

by Gerry Nicodemus

VA Home Purchase Loans

AMCAP Mortgage offers different types of VA loans; purchase loan is the most competitive in the area. As an approved VA lender, we have the lowest rate available to veterans. Our Texas Veteran Mortgage Loan Specialists can guide your every step of the way. If you are a veteran, why not take advantage of the VA home loan program?

In 1944 Congress created the VA Loan Guaranty Program to assist returning service members in purchasing a home. Since that time the Department of Veterans Affairs has helped more than 18 million military members achieve the dream of home ownership.

The VA does not actually lend money but instead they guarantee the loans for approved VA Lenders. This allows lenders added protection against default which results in several distinct advantages with VA Loans.

The VA home loan program is a nationwide program available to all servicemen/women and their eligible spouse. Texas has a Veteran mortgage loan program, The Texas Veterans Land Board, also known as the Texas Vet Loan. This program has a similar guideline structure as a regular VA home loan. It offers reduced interest rate for disabled veterans who have a 30% disability rating per VA. The Texas Veterans Land Board (TVLB) program oftentimes are the best option for military personnel and veterans buying a home here in Texas.

VA Home Refinance

The Veterans Administration (VA) home loan center offers an Interest Rate Reduction Refinance Loan (IRRRL) by refinancing an existing VA home mortgage. IRRRL lowers the current interest rate, thereby, lowering the monthly payments. Home owners who currently holds an adjustable rate mortgage (ARM) can also refinance and convert the loan into a fixed rate.

Eligibility:

An Interest Rate Reduction Refinance Loan (IRRRL) must be an existing VA to a VA refinance. This program can only be made to refinance and property in which the homeowner already used their VA eligibility. It will reuse the entitlement that was originally used. Other requirements include:

  • A new Certificate of Eligibility (COE) is not required if you already have your COE. Show your prior use of entitlement and that will be reused;
  • Occupancy requirement for IRRRL is different from other VA loans. Borrower has to certify that you “previously” occupied the home;
  • No other loans or any type of loans can be paid from the proceeds of an IRRRL except the existing VA loan. If the borrower has a subordinate loan, also referred to as second mortgage, the lienholder must agree to subordinate that lien. The new VA loan will have to be the first mortgage.

Interest Rate Reduction Refinance Loans (IRRRL) requires no appraisal and credit underwriting requirement. Although credit underwriting is not required, the mortgage must be current and must have been paid as agreed with no late payments in the last twelve (12) months. Mortgage must be current at the time of application. It is also a lender discretion to require an appraisal, verify employment and require additional stipulations for each borrower.

An IRRRL can be done with absolutely no money out of the borrower’s pocket. All costs may be  included in the new loan or by making the new loan at a high enough interest rate that enables the lender to pay all the closing costs for the borrower.

A fixed rate to fixed rate IRRRL has to result in a lower monthly payment. If refinancing an existing ARM to an IRRRL fixed rate, the resulting interest rate may be higher or increase compared to the original loan’s ARM rate.

The homeowner in the IRRRL program may not receive any cash from the loan proceeds. For additional information regarding the VA Interest Rate Reduction Refinance Loan program, contact our VA loan specialists.

VA Equity Loans

Equity Loans in Texas go by several different names such as Texas Cashout, Texas Home Equity Loans, Cashout refi., etc..  The VA does allow for a secondary VA refinance loan type which is referred to the VA Cash-Out refinance loan.  It allows borrowers to refinance their conventional or VA loan into a lower rate while also taking cash out.  Unfortunately, this program is not offered in Texas.

As an approved Texas VA lender, AMCAP Mortgage is also approved to offer several other programs.  While we are unable to offer VA cash-out refinance loans due to Texas regulations, we can still find a program that will work for you.  Take a moment to complete the quick application to the right of this page and we’ll look through your available options to find you the best program for your particular situation.

Other Loan Options

Because The Texas VA Loan Center is run by VA approved lender, Amcap Mortgage Ltd., we also have access to other loan programs available to people looking for a home loan.  This enables borrowers shopping for a home loan to start and complete the whole process with one company as opposed to filling out applications with a multitude of mortgage lenders.  While shopping for any loan it is important to remember that multiple credit pulls can affect your credit score negatively.  It is also important to remember that your credit score plays a major role in the rates applicable to your mortgage loan.

 

VA Loans Texas