VA home loans are a powerful benefit available to eligible veterans, active-duty service members, members of the National Guard and Reserve, and certain surviving spouses. VA loans are provided by private lenders and backed in part by the U.S. Department of Veterans Affairs.
For eligible borrowers, a VA loan can make homeownership more accessible with benefits that may include no down payment, no monthly private mortgage insurance (PMI), competitive financing options and limits on certain closing costs.
Whether you're buying your first home, relocating, using your VA benefit again or considering a refinance, understanding your eligibility, entitlement and loan options is an important first step.
Redwood Mortgage Services helps eligible veterans, active-duty service members and military families explore VA home loan options in Annapolis, Anne Arundel County, Fort Meade, Southern Maryland and surrounding communities. Stuart Kiehne provides personalized guidance on VA eligibility, entitlement, purchasing and refinancing.
Benefits of VA Loans
VA-backed home loans offer several advantages designed to make homeownership more accessible for eligible veterans, service members and surviving spouses. The benefits available to you depend on your eligibility, entitlement, loan type and individual circumstances.
- No down payment may be required. VA does not require a down payment on eligible purchase loans when the sales price does not exceed the home's appraised value, although circumstances such as remaining entitlement or lender requirements can affect the amount needed.
- No monthly private mortgage insurance (PMI). VA-backed loans do not require the monthly PMI typically associated with some other low-down-payment mortgage options.
- Competitive financing. VA-backed purchase loans can offer competitive interest rates and terms.
- Limited closing costs. VA rules limit certain costs borrowers may be charged, and sellers or builders may be able to pay certain closing costs or concessions within VA guidelines. Do VA loans have closing costs? Yes. VA home loans can include closing costs, even when no down payment is required. Depending on the transaction, eligible seller contributions, lender credits, or other arrangements may help reduce the amount a borrower pays at closing.
- Your VA benefit can be used more than once. Eligible borrowers may be able to use their VA home loan benefit again after a previous VA loan, subject to entitlement and other requirements.
- VA refinancing options are available. Eligible borrowers may have options including the VA Interest Rate Reduction Refinance Loan (IRRRL) and VA-backed cash-out refinancing.
VA home loans offer valuable benefits for eligible veterans and service members, including the possibility of purchasing with no down payment, no monthly private mortgage insurance (PMI), and flexible options for certain closing costs. Your eligibility, entitlement and individual loan circumstances determine which benefits apply.
No Down Payment
Eligible borrowers may be able to purchase with no down payment.
No PMI Required
VA-backed home loans do not require monthly private mortgage insurance.
Reusable VA Benefit
Eligible borrowers may be able to use their VA home loan benefit more than once.
VA Cash-Out Refinance Loans in Maryland
Explore your home equity and VA refinancing options.
Eligible veterans and service members who own a home in Maryland may be able to use a VA-backed cash-out refinance to replace an existing mortgage with a new VA loan. Depending on the property's value, available equity, eligibility and lender requirements, borrowers may be able to access a portion of their home equity.
How Does a VA Cash-Out Refinance Work?
A VA cash-out refinance replaces your existing mortgage with a new loan. It may be an option for homeowners who want to refinance a conventional or FHA mortgage into a VA-backed loan, or for eligible borrowers interested in accessing home equity.
Approval depends on factors including credit, income, property value, available entitlement and applicable VA and lender requirements. Closing costs and a VA funding fee may apply unless an exemption is available.
VA Cash-Out Refinance vs. VA IRRRL
A VA cash-out refinance and a VA Interest Rate Reduction Refinance Loan (IRRRL) serve different purposes.
- VA cash-out refinance: May allow eligible homeowners to refinance an existing mortgage and potentially access home equity.
- VA IRRRL: Generally helps borrowers refinance an existing VA loan under applicable VA requirements. It is not intended for withdrawing home equity.
Explore Your VA Refinancing Options in Maryland
Redwood Mortgage Services works with eligible homeowners in Annapolis, Anne Arundel County and throughout Maryland to review VA refinancing options.
Stuart Kiehne, President of Redwood Mortgage Services | NMLS #92008, can help you understand the requirements, potential costs and considerations before deciding whether refinancing makes sense.
All loans subject to approval. Equal Housing Lender.
Every veteran's situation is different. Whether you're buying a home, using your VA benefit again, relocating, or considering a refinance, Stuart can help you understand your options and determine the next step.