The VA provides different loan programs, depending on your needs and situation. Three of them are backed by the VA and one is a direct loan from the VA. Here’s an overview.

VA purchase loans

A VA purchase loan is the most common type of VA loan. It’s when the U.S. Department of Veteran Affairs (VA) guarantees a private lender will be reimbursed if a home gets foreclosed on. Because the VA is taking on risk, qualified homeowners can put little to no money down on a home without having to pay for additional private mortgage insurance (PMI).

Interest rate reduction refinance loan (IRRRL)

An IRRRL allows you to refinance an existing VA home loan to lower your rate, according to the VA. There are two ways you can lower your rate. Either by getting a lower interest rate or changing from an adjustable interest rate to one that’s fixed and won’t change over time.

VA cash-out refinance loan

This also lets you replace your current loan with better terms, according to Bankrate. In this case, you could tap into your home equity and take cash out to pay for other debts – for instance, credit cards, home renovations and more. You can even cash-out refinance if your current home is a non-VA loan, so long as you qualify.

Native American Direct Loan (NADL)

The NADL is when the VA itself acts as a mortgage lender, rather than through a private lender. It’s available to eligible Native American veterans, and veterans with Native American spouses, who want to build, buy or renovate a home on Federal Trust land, according to Benefits.gov.

A Native American organization has to participate in the NADL program. They’ll also have to sign a Memorandum of Understanding, which is an agreement between the organization and VA on the conditions of the loan.