The VA Loan ensures veterans a home loan backed by the federal government without requiring a down payment. This program was created to support veterans and their families by providing accessible housing assistance.
The Veterans Administration offers insurance to lenders to safeguard against loan default. Since the mortgage is guaranteed, lenders can provide more favorable terms and a lower interest rate compared to a regular home loan. VA home loans are accessible in all 50 states and may come with reduced closing costs and no penalties for early payment.
Furthermore, veterans at risk of loan default may receive additional services. VA home loans are open to military personnel who have served for 181 days in peacetime, 90 days during war, or spouses of servicemen either killed or missing in action.
Who is Eligible for a VA Loans?
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.
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
You can apply for a VA Loan with any mortgage lender that participates in the program. In addition to the application requirements from your lender, you will need the following at application time:
Certificate of Eligibility from the Veterans Administration by submitting a completed VA Form 26-1880.
Proof of Military Service from a VA Eligibility Center
A VA home loan must be used to finance your personal residence within the United States and its territories. You have choices for the type of home you purchase:
Existing Single-Family Home
Townhouse or Condominium in a VA-Approved Project
New Construction Residence
Manufactured Home or Lot
Home Refinances and Certain Types of Home Improvements
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Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from Andela Financial Services and the author. Do not rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions, or mistakes.