Why doesn’t the VA offer house equity loans or HELOCs?
To put it simply: as the VA just backs first-lien mortgages. A property equity loan (also referred to as a second home loan) is yet another loan to very first home loan (HELOCs work a little differently) and it is really a moment lien in your home loan.
Although the VA doesn’t guarantee home equity loans, it is possible to nevertheless borrow from a separate loan provider, while keeping your VA loan as the very first home loan. Continue reading “Does the VA Provide a residence Equity Loan?”