The U.S. Department of Veterans Affairs offers three home loan programs to eligible surviving spouses of veterans and service members. These programs may be used to refinance a mortgage or help purchase, construct or improve a home. Certain surviving spouses may be eligible for the following programs:
- Purchase loans
- Cash-out refinance home loans
- Interest rate reduction refinance loans
How this benefit helps
These programs help surviving spouses financially in a number of ways:
- Lenders offer competitive interest rates on VA-backed purchase loans. This can help you buy, build, or improve a home — especially if you don’t want to make a down payment.
- A VA-backed cash-out refinance loan lets you replace your current loan with a new one under different terms. This can help you get money you need now or help to save money by revising the terms of the loan.
- An interest rate reduction refinance loan can help you reduce your monthly mortgage payments — or make your payments more stable. Refinancing lets you replace your current loan with a new one under different terms.