If you are veteran who wants to secure a home loan using the VA home loan program, you should be aware of some specific market restrictions that exist for these types of loans when compared to standard forms of home mortgages.
First, A VA mortgage does not include what are called “no document” or “no income verification” loans. The VA does also does not guarantee interest-only loans or home equity lines of credit. Another restriction that makes VA home loans different from the more standard loan fare is the fact that you do not have cash back options.
At the same time, VA loans do offer a form of cash-out refinancing. With this type of loan, the veteran is authorized to borrow up to 90 percent of the total value of their home. To compensate for the lack of availability for home equity lines of credit or HELOCs, you can obtain home equity loans through the VA home loan program. The borrower may actually obtain a full 100 percent of their home’s equity if they wish to do so.
