eligible veterans.
• Purchase loans - A purchase loan can be used by a veteran to buy or build a new home, buy a manufactured home or lot, a condo in a VA-approved project, a home with up to four units if the veteran plans to live in one, or even improve a home by adding new features like solar power to make the home more energy efficient. • Interest Rate Reduction Refinance Loan (IRRRL) - n (IRRRL) -An IRRRL is available to veterans who have an existing VA- backed home loan that they want to refinance under better terms to reduce monthly payments or make them more stable by switching from a variable or adjustable interest rate to a fixed one. Also known as a VA streamline refinance, these typically require less paperwork than a traditional refinance, and don’t require a new home appraisal. These loans do require a one-time .5% funding fee plus any closing costs the lender requires, so be sure it makes financial sense to refinance your existing VA loan. • Cash-out refinance loan - A Cash-out refinance loan allows a veteran to replace their existing home loan with a new one with different terms, take cash out of their home equity, or refinance a non-VA loan and replace it with a VA-backed loan. Like all other VA home loans, the home must be the primary residence of the veteran. Unfortunately, at the time of this publication this option is not available in Texas. It is available in all other states and U.S. Territories.
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