VA Loans

The VA loan is a mortgage option available to Veterans, Service Members and select military spouses. VA loans are issued by private lenders, such as a mortgage company or bank, and guaranteed by the U.S. Department of Veterans Affairs (VA).

Highlights of a VA Loan

No down payment

Because VA loans are backed by the U.S. Department of Veterans Affairs, veterans can buy a house with no down payment. This helps make homeownership more affordable.

Competitive rates

Since the mortgages are VA insured, Best Capital Funding can offer interest rates that are competitive with the rates on other loans.

No Private Mortgage Insurance

You don’t have to pay for mortgage insurance when you buy or refinance a house with a VA loan. Most veterans will pay a one-time VA funding fee when they use a VA loan, however. The funding fee helps the VA cover losses on mortgages that might default. The fee is based on your service, your down payment, and if you’ve had a VA loan before.

Limits on closing costs

The VA requires commissions for real estate professionals, brokerage fees, and buyer broker fees be paid by the seller. You can also negotiate with the seller for who pays for closing costs like origination fees, discount points, and the VA funding fee.

Potential Advantages of a VA Refinance

VA IRRRL

The VA Interest Rate Reduction Refinance Loan (IRRRL) is one of the VA loan program’s two refinance options.

IRRRLs are also known as VA Streamlines because they are a simple, low-cost loan that in some cases might not require credit underwriting, income verification or an appraisal.

VA Cash-Out Refinance

The VA Cash-our Refinance allows qualified Veterans to refinance their mortgage and unlock their home’s equity. These loans are open to Veterans with and without current VA loans. Qualified homeowners can typically refinance up to 90 percent of their home’s value.

Lending guidelines and loan-to-value requirements can vary. Homeowners are not required to take out cash with these loans, which means Veterans with non-VA mortgages can use this option as a basic rate-and-term refinance.

Disclosures: 

  • By refinancing your current mortgage loan, your total finance charges may be higher over the life of the loan
  • Best Capital Funding is not affiliated with or acting on behalf of or at the direction of VA or the Federal Government