There are several different VA loans available for eligible borrowers. Some people may be looking for a new home loan, or a purchase loan as they are called. Others may be looking for a loan on a condominium, and others may already have a home and may be looking to either refinance to save some money or take out a loan to be used towards the repairs and refurnishing of an existing property. No matter your need, there is a loan available.
Not all types of VA loans, however, are available through every VA lender. Each lender is able to choose which type of loan they wish to provide, and the Department of Veteran Affairs cannot force a lender to issue each kind of loan. Some financial institutions have chosen to temporarily or permanently discontinue the issuing of certain kinds of loans due to market conditions and demand.
For example, it may be difficult to get a loan for a new construction home from a lender who does new purchase VA loans. Similarly, others may have a hard time finding a lender who will issue a VA loan for a manufactured home or a prefabricated property. Lenders may have opted to stop issuing these kinds of loans due to market instabilities, regardless of the fact that the VA guarantees each VA loan. Just because these loans aren’t available now, however, doesn’t mean that they will not be issued again in the future.
New purchase VA loans and VA refinances are the most common forms of VA loans being issued and are the easiest to get. Many, if not all, of the VA lenders offer these loans. However, they do not come without limitations, and you will need to prove that you qualify and are eligible for and meet the terms of a VA loan.
Simply being eligible to apply for a VA loan does not guarantee that you will be approved and issued a VA loan. Even if you meet the VA requirements, the lender may not be offering the particular kind of loan that you wish to get. If you have difficulty finding a loan through a specific lender, search around at different institutions and ask what your best VA borrowing options are. You may be surprised at what is available and what you can do with a VA loan.