Why does not the VA offer house equity loans or HELOCs?
To put it simply: considering that the VA just backs mortgages that are first-lien. A property equity loan (also referred to as a second home loan) is one more loan to your first home loan (HELOCs work a little differently) and it is basically an extra lien in your home loan.
Although the VA doesn’t guarantee house equity loans, you are able to nevertheless borrow from a separate loan provider, while keeping your VA loan as your very first mortgage. Continue reading