Most veterans know about the VA purchase loan. Fewer know about the IRRRL, cash-out refi, renovation loan, or multi-family strategy. Each one solves a different problem.
Here's every VA loan type and when to use it.
VA Purchase Loan
This is the standard. Buy a primary residence with $0 down, no PMI, and a competitive rate.
Key details:
- Up to $832,750 with zero down in most California counties ($1,249,125 in high-cost areas like LA, San Diego, and the Bay Area)
- Borrow above the limit with a partial down payment on the overage
- Property must be your primary residence
- Eligible types: single-family, VA-approved condos, townhomes, manufactured homes, and 2-4 unit properties (you live in one unit)
For full details on eligibility and costs, read the VA loan overview and VA loan costs breakdown.
Steps to buy:
- Get your COE (here's how)
- Get pre-approved with a VA-approved lender
- Find a home with an agent who understands VA requirements
- Complete the VA appraisal ($500-$800)
- Close and move in
Need help comparing? See pre-approval vs. pre-qualification.
VA IRRRL (Streamline Refinance)
The Interest Rate Reduction Refinance Loan -- also called the VA Streamline -- is the fastest way to lower your rate on an existing VA loan.
Why it's great:
- Minimal paperwork. No income verification required in most cases.
- No appraisal needed (usually).
- Funding fee is only 0.5% -- much lower than the purchase fee.
- Close in as little as 15-21 days.
Requirements:
- You already have a VA loan
- The refinance must lower your interest rate (with limited exceptions for ARM-to-fixed conversions)
- You must be current on your mortgage -- no late payments in the last 12 months
When to use it: Rates dropped since you bought and you want a lower payment. That's it. Simple.
If you're wondering whether now is a good time to refi, read when to refinance your mortgage.
VA Cash-Out Refinance
Need equity out of your home? The VA cash-out refi lets you tap your home's value.
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How it works:
- Refinance up to 90% of your home's appraised value
- Take the difference in cash
- Works on VA loans and non-VA loans (convert a conventional mortgage into a VA loan)
- Funding fee: 2.15% (first use) or 3.3% (subsequent use)
Common uses:
- Pay off high-interest debt
- Fund home improvements
- Cover major expenses
Example: Your home appraises at $700,000. You owe $400,000. At 90% LTV, you could refinance up to $630,000 and take roughly $230,000 in cash (minus closing costs and the funding fee).
For a deeper look at cash-out options, see cash-out refinancing in California.
VA Renovation Loan
The VA renovation loan rolls repair costs into your mortgage. Repairs must be done by licensed contractors within a set timeframe, and the home must meet VA standards after the work is finished. Not every lender offers this -- ask before you shop.
Multi-Family Strategy
You can't buy a pure investment property with a VA loan. But you can buy a 2-4 unit property, live in one unit, and rent out the rest. The rental income helps you qualify for a larger loan, and you're building a portfolio with $0 down.
After 12 months of occupancy, you can move out, keep it as a rental, and use remaining entitlement to buy again. More details in buying 2-4 unit property in California.
Using Your VA Benefit More Than Once
VA loans are reusable. Sell the home and pay off the loan, and your full entitlement is restored automatically.
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Don't want to sell? If your first loan used $400,000 of entitlement and your county limit is $832,750, you've still got $432,750 in remaining entitlement for a second purchase. Common with PCS moves.
Paid off the loan but kept the home as a rental? Apply for one-time restoration to free up your full benefit again.
More in This Series
- VA Loans in California: The Basics -- overview and key benefits
- VA Loan Eligibility: Who Qualifies and How to Get Your COE -- service requirements and COE process
- VA Loan Costs: Funding Fee, Closing Costs, and What to Expect -- what you'll pay at closing
Get your free VA loan quote or explore refinance options if you already have a VA loan.
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