VA Loan paper with money, pen and glassesLack of a down payment is the leading hindrance for most homebuyers nowadays. However, various home loan options require no down payment. One of the best ones is a VA loan. This mortgage has the backing of the Department of Veteran Affairs and contains no early repayment or exit penalties.

There might be a small funding fee required by your mortgage lender in Fresno, however. The exact funding fee amount you pay depends on your category of military service, loan amount, among other factors. The following are the VA mortgage options you have:

Purchase Loans

VA purchase loans are designed for qualified borrowers who want to invest in a primary residence. The loans can be used for construction or purchase of a ready home. You don’t need a down payment for this loan provided your home’s purchase price doesn’t exceed its appraised valuation. VA purchase loans range from adjustable and fixed rate to jumbo loans.

Cash-Out Refinance Loans

Using your property’s equity as collateral can qualify you for a VA refinance loan. The refinance provides extra money for home improvements and other personal needs. VA cash-out refinance mortgages turn into your new loan, unlike traditional mortgages that run concurrently with an existing home loan. They are accessible to all borrowers irrespective of their current mortgages.

Streamline Refinance Loans

These mortgages are at times known as IRRLs or interest rate reduction loans. IRRLs allow you to change your current VA loan to a lower interest one. The loans are uncomplicated, quick to process, and have minimal closing expenses since you’re refinancing one VA loan into another.

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The above VA loans are open to those currently in the military, veterans, and those discharged from the service. Surviving spouses of the military members can also access these VA loans. If you qualify for one, a VA loan is the best choice you have for homeownership.