VA Loan Programs for Arizona Veterans in 2024

VA Loan Programs Arizona

What Types Of VA Loan Programs Are There In Arizona?

There are essentially two types of VA loan programs available when using the VA home loan benefit:  Purchase or Refinance.  However, there are other programs that will fall under these two categories.  With that said, each type of VA loan program will come with certain advantages and disadvantages, so make sure your loan officer explains the differences between all of them.  Let’s explore some of the VA loan options available here in Arizona.

Purchasing with the VA Home Loan

A VA loan is insured by the US Department of Veterans Affairs (VA). This insurance provides a safety net to the lender in case of a default. As a result of that security, the VA home loan provides Veteran homebuyers with more flexible, affordable opportunities.

With a VA mortgage, it may be easier for you to qualify to buy the home you have dreamt of, and your loan payments could be less than they would with other types of financing.

Perks of Buying with a VA loan

  • Buy a home today with usually $0 down payment.
  • Interest rates are usually lower than conventional loans, even if you do not have a perfect credit score.
  • There is no need for mortgage insurance or PMI, which will give you a lower payment and save you money.
  • No pre-payment penalties, so you can go ahead and pay off your loan early.
  • Credit qualification requirements for VA mortgages are much easier and flexible.
  • The closing costs are capped when the seller doesn’t pay them.
  • If you have 10% or more in service-connected disablity, the VA waives the Funding Fee.

Types of Properties for a VA Loan

Use your VA home loan to buy:

  • Regular SFR
  • Manufactured Homes
  • Condominiums / Townhomes
  • New built (Construction)

VA Renovation Loan

What is a VA Renovation Loan? Can you use the VA Renovation Loan to purchase a home in Arizona? Under the terms of a VA renovation loan, borrowers can obtain funds to purchase and renovate a property, and otherwise finance the cost of home improvements into one VA loan. Similar to a traditional VA loan, a VA home renovation loan is designed to facilitate the alteration and repair of a home.       NOTE** Many lenders do not offer this VA loan option.

VA Construction Loans

A common question that I get asked on a monthly basis is: Can you build a house with a VA Loan? Yes, Veterans in Arizona can use a VA construction loan to build a single-family home on land they own already own or on land that they intend to acquire.  Read more here:  What is a VA Construction Loan?

VA Loan Programs - Refinance

Next up: You can also use a VA loan to refinance your current mortgage.   Here are some types of refinance loans available through the VA.

VA Cash-Out Refinance

A VA cash-out refinance loan lets you use up to 100% of your home’s equity to pay off bills, family debt, educational costs or any other expenses. You can also use a VA cash-out refinance for home improvements or to boost your investment and savings accounts. Eligible borrowers can use this option as a rate-and-term refinance, if desired. Cash-out refinances are also available to non-VA borrowers, but you won’t be able to tap into as much of your home equity.

A Interest Rate Reduction Refinance Loan (IRRRL)

A VA IRRRL, also known as a VA Interest Rate Reduction Loan, is commonly used to help you reduce your monthly mortgage payments on an existing VA home loan by lowering your interest rate.   This is a very streamline process, which is sometimes referred to as a "VA StreamLine Refinance". It is a great option when you purchased a home with a high interest rate, and rates have now dropped.  It is also great for those that purchased with an or  adjustable-rate loan to refinance to a fixed-rate mortgage.  Because the process is stream-lined, you won’t have to have another appraisal done or provide additional documentation concerning your income with this type of VA refinance.  

VA Loan Programs - Which one works best for you?

As you can see, there are several VA Loan Programs to eligible veterans here in Arizona. Which type of VA Loan Program is best for you? If you have any questions, or are ready to start the process, then please reach out to us at 520-818-8100. We look forward to working with you.