Everyone deserves the opportunity to achieve the American dream of homeownership, and few are more deserving than America’s military veterans and service members. For that reason, the U.S. government created the VA home loan program to help eligible military-connected borrowers buy, build, repair, retain or adapt homes for their personal residences.

VA home loans are a special type of mortgage that is backed by the U.S. Department of Veteran Affairs and provided through VA lenders such as Draper and Kramer Mortgage Corp. Eligible borrowers include active-duty military, honorably discharged military, National Guard Reserves and spouses of service members who died while in service or from service-connected disabilities.

Here are summaries of the major VA loan programs and their benefits:

VA home purchase loan 

The standard VA home loan program, this type of loan allows a qualified borrower to purchase a home with no down payment and no mortgage insurance premium. While VA loans do require a VA funding fee, lenders such as Draper and Kramer Mortgage Corp. allow this fee to be financed into the loan, enabling qualified buyers to purchase homes with low out-of-pocket costs.

VA cash-out refinance

This type of mortgage refinance allows a qualified borrower to refinance a VA loan to withdraw up to 100% of their home’s value – minus any current mortgage balance – as cash. Compared to a conventional cash-out refinance, the VA option may offer more cash, lower or no mortgage insurance requirement, a better interest rate and easier qualification requirements. As with any cash-out refinance, the funds can be spent on anything, including home renovations, college tuition, debt consolidation, large purchases and more.

VA Interest Rate Reduction Refinancing Loan (IRRRL)

An IRRRL is a special type of mortgage that is used to refinance an existing VA loan to one with a lower or more stable monthly payment. This is done by either obtaining a lower interest rate or replacing an adjustable rate with a fixed rate. Compared to a conventional mortgage refinance, an IRRRL generally has reduced paperwork and credit requirements, requires no appraisal and offers the option for no out-of-pocket expenses.

VA renovation loan

As the name implies, a VA renovation loan is used to finance a home renovation. A qualified homebuyer can use the loan to buy and renovate a home, and a qualified homeowner can use it to refinance and renovate a home.


While this is a simplified overview of VA loans, there is more to know before applying for one. As a long-time VA lender, we at Draper and Kramer Mortgage Corp. are proud to help qualified military-connected homebuyers and homeowners access their VA benefits. And to show our appreciation for our veterans, we charge no lender fees on all our VA loans. If you or someone you know is interested in applying for a VA loan, please don’t hesitate to reach out.

Programs included on this document are subject to approval based on individual program guidelines and borrower’s credit and underwriting approval. Contact your Draper and Kramer Mortgage Corp. professional for full program details and requirements.

Draper and Kramer Mortgage Corp. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the U.S. Department of Veterans Affairs or any other government agency. Draper and Kramer Mortgage Corp. does not charge lender fees on VA home loan programs, and qualified borrowers may require no down payment. However, other third-party closing costs do apply on VA home loans.

By refinancing a mortgage, total finance charges may be higher over the life of the new loan. Contact your Draper and Kramer Mortgage Corp. loan officer to discuss the total expected costs and savings of your refinance.