VA Home Loans

What is a VA Home Loan?

For U.S. servicemembers and veterans, it can sometimes be difficult to establish the level of credit necessary to qualify for a home loan. To make homeownership more attainable for servicemembers and veterans, the Department of Veteran Affairs established the VA Home Loan, which guarantees a portion of the loan and enables us to provide you with more favorable loan terms. This guarantee allows lenders like PennyMac to offer home loans to servicemembers and veterans who may otherwise not be able to qualify for a conventional loan. To date, the VA Home Loan program has helped over 20 million servicemembers and veterans buy a home, since WWII.

Eligible servicemembers and veterans can take advantage of some of the many VA Home Loans benefits such as:

  • No down payment on home purchase loans
  • Lower interest rates
  • No monthly mortgage insurance premiums help keep your monthly payments low.

What VA Home Loan Products are Available?

PennyMac offers VA purchase and refinance loan options designed to help servicemembers and veterans achieve and maintain their dream of homeownership.

VA Purchase Loan

If you are on active duty or retired from the military and in the market for a new home, you should call PennyMac to learn how you could save money with a VA Home Loan.

Rates & More Info >
  • No down payment unlike conventional or FHA loans.*
  • NO PMI or upfront MIP (Mortgage Insurance Premium) helps keep your monthly payments low.
  • Lower interest rates.
  • VA funding fee may be financed into the loan.

* As long as the sales price does not exceed the appraised home value.

VA Streamline (IRRRL) Refinance
(Interest Rate Reduction Refinance Loan)

Already in a home? Consider refinancing into a VA IRRRL (Interest Rate Reduction Refinance Loan) also called the Streamline Refinance Loan. The VA IRRRL lowers your interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also often refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.

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  • Lower interest rates compared to conventional loans.
  • Designed to be easy to apply and quickly close.
  • Flexible loan terms—there’s no need to extend your current payment schedule.
  • Minimal paperwork and income documentation required.
  • Closing costs can be rolled into the cost of the loan—no out of pocket expenses.

VA Cash-Out Refinance

The VA's Cash-Out Refinance Loan is for homeowners who want to take cash out of their home equity to take care of concerns like paying off debt, funding school or making home improvements. As home values continue to rise across the country and interest rates remain relatively low, now may be a great time to consider a VA Cash-Out refinance.

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  • Pay off higher interest rate debt, such as credit cards.
  • The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan.
  • PennyMac will lend up to 90% of the value of your home*

*Loan limits are established by the VA and can vary by county.

*By refinancing your existing loan, your total finance charges may be higher over the life of the loan.
Am I Eligible for a VA Home Loan?

Am I Eligible for a VA Home Loan?

Active or former service members with the following terms of service today may be eligible* for a VA Home Loan:

  • 181 days of service during peacetime (active duty)
  • 90 days of service during wartime (active duty)
  • Six years of service in the Reserves or National Guard
  • Some surviving spouses (spouse passed away due to service-related complications)

*You will also need to meet all VA and lender credit, income, and employment requirements.

How Does PennyMac Support Our Veterans?

PennyMac understands that our people are essential to continuing our growth and leadership in the mortgage finance industry.

That’s why we have worked with Veterans groups such as DAV/RecruitMilitary to help us actively recruit America’s highest quality talent. Allowing them to continue developing their skills and expand their experience in a customer-centric environment that emphasizes high ethical standards, open communication and excellence.

How Does PennyMac Support Our Veterans?
Why Should I Choose PennyMac?

Why Should I Choose PennyMac?

PennyMac proudly supports and is pleased to offer VA loan products designed to help our servicemembers and veterans achieve homeownership. We currently service over 100,000 servicemembers and veterans who have taken advantage of the federal government’s VA Home Loan program to buy or refinance a home.

As one of the largest direct lenders and servicers in the country, PennyMac Loan Services, LLC specializes in VA home loans. We are committed to offering our servicemembers and veterans great rates on VA home loans.