Can I borrow money from the VA?

You can borrow money from the VA if you get a VA-backed home loan or a loan against your VA life insurance policy. The types of VA-backed home loans available now are purchase loans, Native American direct loans, interest rate reduction refinance loans, and cash-out refinance loans. Below, you can find more details about the different ways to borrow money from the Department of Veterans Affairs.

Ways to Borrow Money from the VA

Purchase loans

These loans are mortgages that offer veterans better terms than conventional mortgages. To be eligible for one of these loans, you need to meet the minimum active-duty service requirement, not be dishonorably discharged, live in the home you want to purchase, and meet the credit score and income requirements (plus other requirements).

Native American direct loans

This program allows Native American veterans and their spouses to get a loan to improve or purchase a home on federal trust land. To get one of these loans you must have a VA-backed home loan certificate of eligibility, meet the VA’s credit standards, have enough income to afford the loan and live in the home you want to use the loan for. Additionally, your tribal government must have an agreement with the VA about how the loan will work on federal trust land.

Interest rate reduction refinance loans

An interest rate reduction refinance loan allows veterans to reduce the cost of their monthly VA purchase loan payments. To qualify for one of these loans, you must have a VA-backed home loan, certify that you used to or currently live in the house covered by the purchase loan, and use the refinance loan to pay off the existing purchase loan.

Cash-out refinance loans

You can refinance your current mortgage and take out cash from your home’s equity when you get a cash-out refinance loan from the VA. To get one of these loans, you need to live in the home you’re refinancing, meet the minimum active-duty service requirement, not be dishonorably discharged, and meet the income and credit score requirements (among other requirements).

VA life insurance policy loan

You can borrow up to 100% of the cash value of your policy if it has been in force for one year. To be eligible for this loan, you need to have an existing policy under the United States Government Life Insurance program, the National Service Life Insurance program, the Service-Disabled Veterans Insurance program, the Veterans’ Special Life Insurance program or the Veterans Reopened Insurance program.

Other Places Veterans Can Borrow Money

If you’re interested in a personal loan, institutions like USAA or PenFed Credit Union offer loans to military members and their families. Keep in mind that veterans do not get any special offers with conventional loans.

To read about the top-ranked offers, check out WalletHub’s picks for the best personal loans for veterans. You can also estimate your potential rates with our free pre-qualification tool.