VA Loans
What is a VA Loan?
The VA Loan is a benefit established in the GI Bill of Rights, signed into law by President Franklin D. Roosevelt. It provides veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans.
The GI Bill contributed more than any other program in history to the welfare of veterans and their families, and to the growth of the nation's economy. Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981.
There is a six-year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses. Being a veteran doesn't make a homebuyer automatically eligible for a home loan, you must also meet credit/income requirements to be eligible.
VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan.
