VA Home Loan
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans’ exceptional benefits, including low interest rates and no down payment.
The VA Loan provides veterans with a federally guaranteed home loan which requires no down payment. This program was designed to provide housing and assistance for veterans and their families.
The Veterans Administration provides insurance to lenders in the case that you default on a loan. Because the mortgage is guaranteed, lenders will offer a lower interest rate and terms than a conventional home loan. VA home loans are available in all 50 states. A VA loan may also have reduced closing costs and no prepayment penalties.
Additionally, there are services that may be offered to veterans in danger of defaulting on their loans. VA home loans are available to military personal that have either served 181 days during peacetime, 90 days during war, or a spouse of serviceman either killed or missing in action.
The Veteran Administration’s Loan originated in 1944 through the Servicemen’s Readjustment Act; also known as the GI Bill. It was signed into law by President Franklin D. Roosevelt and was designed to provide Veterans with a federally guaranteed home loan with no down payment. VA loans are made by private lenders like banks, savings & loans, and mortgage companies to eligible Veterans for homes to live in. The lender is protected against loss if the loan defaults. Depending on the program option, the loan may or may not default.
Wartime/Conflict Veterans
- Veterans who were NOT Dishonorably Discharged, and served at least 90 days
- World War II – September 16, 1940, to July 25, 1947
- Korean Conflict – June 27, 1950, to January 31, 1955
- Vietnam Era – August 5, 1964, to May 7, 1975
- Persian Gulf War – Check with the Veterans Administration Office
- Afghanistan & Iraq – Check with the Veterans Administration Office
- Veterans Administration website www.va.gov
Peacetime Service
At least 181 days of continuous active duty with no dishonorable discharge. If you were discharged earlier due to a service-related disability you should contact your Regional VA Office for eligibility verification.
- July 26, 1947, to June 26, 1950
- February 1, 1955, to August 4, 1964, or May 8, 1975 to September 7, 1980 (Enlisted), or to October 16, 1981 (Officer)
- Enlisted Veterans whose service began after September 7, 1980, or officers who service began after October 16, 1981, must have completed 24-months of continuous active duty and been honorably discharged
Reserves and National Guard
Certain U.S. Citizens who served in the Armed Forces of a government allied with the United States during World War II.
What are the benefits of a VA loan?
- Surviving spouse of an eligible Veteran who died resulting from service and has not remarried.
- The spouse of an Armed Forces member who served Active Duty and was listed as a POW or MIA for more than 90-days.
- 100% Financing & No Down Payment Loans
- No Private Mortgage (PMI)
- No Penalties for Prepaying the Loan
- Competitive Interest Rates
- Qualification is Easier than a Conventional Loan
- Sellers Pay Some of the Closing Costs
- Can be combined with additional down payment assistance to reduce closing costs
