VA Loans

Va Loan Benefits

  • Lower Interest Rates When Compared to Conventional Loan Programs
  • Can be Assumable
  • Flexible Down Payments for Purchases

History of the VA Loan

The VA Loan began in 1944 through the original Servicemen’s Readjustment Act, also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided 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. 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. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

Who is eligible for a VA Loan?

Wartime/Conflict Veterans Wartime/Conflict 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 VA regional office for specific eligibility. Afghanistan and Iraq – Check the VA’s Web site for eligibility guidelines for current service in Afghanistan and Iraq. Reserves and National Guard Members who have completed six years of service and have been honorably discharged (or are still serving) may be eligible for a VA loan. Contact your regional VA office for more details. Peacetime Service Peacetime service of at least 181 days of continuous active duty with no dishonorable discharge. If you were discharged earlier due to a service-connected disability, you should speak with the regional VA office to verify eligibility. 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 whose service began after October 16, 1981, must normally have served at least two years.

Other Options for Eligibility

Other types of service that may make you eligible for a VA loan: Certain US citizens who served in the armed forces of a government allied with the United States during World War II. Surviving spouses of eligible persons who died as the result of service or service-connected injuries. The surviving spouse must not have remarried. The spouse of any member of the Armed Forces serving on active duty who has been listed as a prisoner of war or missing in action for more than 90 days.