Veteran Loans Programs to Help You Buy, Build, or Improve Your Current Home
Veteran loans are programs of the U.S federal government that provides different loan programs for veterans. It primarily provides financial assistance through loans with a specified interest that needs to be repaid.
These loans primarily focus on housing services and other loans for veterans. The main goal is to help veterans to have financial sources during their financial crisis and solve their respective problems.
In the United States, most of the veteran loans were handled and supervised by the
U.S. Department of Veteran Affairs. They manage the implementation of loan programs throughout the local states and territories.
Moreover, the said cabinet ensures its capability of providing a loan program for every veteran in the United States.
What are the Available Veteran Loans?
There are types of loans offered for veterans. Most of the veteran loans were created and funded by the U.S federal government. However, most of these loans focus on housing loans for veterans.
Available government loans for veterans.
VA Cash-out Refinance Loan
VA Cash-out Refinance Loan is a loan program that assists veterans to refinance their respective loans. It will replace the current loan terms of your loan with another. In this way, the said loan program will help veterans with the payment of their respective loans.
Qualification and requirements:
• Must have VA-backed home loan Certificate of Eligibility
• Must meet the lender’s standard guidelines for income, credit, and any other requirements.
• Must live in the home related to the loan.
VA Home Purchase Loan
VA Home Purchase Loan is a program that assists veterans to purchase, building, and renovating a home. Lenders from the said program provide competitive interests for veterans who want to have a home loan.
There are no required down payments for the VA home purchase loan. The purpose of this program is to support and help each veteran to have a decent, safe, and comfortable home.
Qualification and requirements:
• Must have VA-backed home loan Certificate of Eligibility
• Must meet the lender’s standard guidelines for income, credit, and any other requirements.
• Must live in the home related to the loan.
VA Native American Direct Loan
VA Native American Direct Loan (NADL) is a loan type for veterans aiming to help and support them to buy, build, and improve a home. However, it is limited to Native American veterans or their spouses.
The said loan has many advantages such as no down payment, no Private Mortgage Insurance, limited closing costs, and more.
In addition, it will also allow veterans to have homes on federally trusted land throughout the United States.
Qualification and requirements:
• Must have VA home loan Certificate of Eligibility (COE).
• Must meet the credit qualifications
• Must have proof that will indicate your capability for the payment of the loan.
• Must live in the home related to the loan.
VA Interest Rate Reduction Refinance Loan
VA Interest Rate Reduction Refinance Loan (IRRL) is a loan program that helps its beneficiaries with the payment of VA-backed home loans.
It primarily helps veterans with the refinancing of their respective VA Home Loan payments by replacing the terms of the current loan.
The goal of the said program is to assist veterans by lowering their monthly payments and having stable payments for their respective home loans.
Qualification and requirements:
• Must have a VA-backed home loan.
• Must be living in the home related to the loan.
VA Veterans Life Insurance Policy Loans and Cash Surrenders
VA Veterans Life Insurance Policy Loans and Cash Surrenders is a loan for veterans with life insurance to have a loan related to it.
The said loan allows policyholders with permanent life insurance to have loans up to 94% of their insurance benefits after a year of its cash value.
It primarily helps veterans, especially those who suffer from financial crises to have a great source of funds.
Qualification and requirements:
Must have any of the following veteran life insurance:
1. United States Government Life Insurance (USGLI)
2. National Service Life Insurance (NSLI)
3. Veterans' Special Life Insurance (VSLI)
4. Service-Disabled Veterans Insurance (S-DVI)
5. Veterans Reopened Insurance (VRI)
Apply for Veteran Loans
Application processes of veteran loans are likely similar to each other. Check the provided steps below for the application for Veteran Loans.
1. Find a lender for the loan program.
2. Prepare the required document such as a Certificate of Eligibility (COE) and others.
3. Start the application process for the program through your lender.
4. Follow the process of the lender for the loan program until it becomes successful.
Required Documents for the Application for Veteran Loans
The required documents for the application for Veteran Loans may vary depending on the type of loan. The U.S Department of Veteran Affairs may require more specific documents related to the loan program.
Remember that the validity of the documents that need to be submitted is important to avoid such problems.
Refer to the list below for some of the required documents for the application for Veteran Loans.
DD Form 214
This is the form issued by the United States Department of Defense for veterans who retire or are discharged from the armed forces. All veterans must have and keep the said form. It will be used for the certificate of eligibility for VA Loan benefits.
Statement of Service Letter
Veterans who are still serving in the military and applied for a Veteran Loan must get this certificate. It will be used for the confirmation of your eligibility with the loan programs.
NGB 22 or retirement points summary
Former military reservists or national Guard veterans must have this form to determine their eligibility for the loan programs.
Certificate of Eligibility (COE)
This certificate must indicate the eligibility of an individual as well as the loan benefits.
1. Proof of pension
2. Proof of service related to Disability (if applicable)
3. Proof of current housing allowance/quarters
