The VA Loan Program Was Established In 1944 To Assist Veterans. Returning From War

Category: Finance.

The Veterans Administration- or VA- was established in. 1930 to coordinate the benefits and legislation affecting war veterans. The VA loan program was established in 1944 to assist veterans. returning from war.

Today, the VA is the second largest government department and is. responsible for the affairs of about 70 million people who are veterans, survivors or family members. The program s aim was to allow veterans to easily. afford to buy a home- and also to thank them for their service and. dedication. A VA loan is basically a mortgage aimed specifically at veterans. and while it works much the same way as a regular mortgage, it does have. several advantages. Almost 20% of veterans aren t actually aware of the home. loan program- despite this, over 18 million VA home loans have been. taken out since the program s inception, totaling well over$ 500. billion. Typically, a VA loan doesn t require money for a. down payment or for closing costs- it also tends to come with a. lower interest rate as well. VA loans close in 45 days or less.

Around 90% of applicants don t provide a down payment and most. And there are usually no penalties. for prepaying a VA loan early. A VA loan can be used not only to buy a house, but also for a. townhouse or condo as well. You also don t need to have private. mortgage insurance as the VA itself guarantees the loan amount. Loans can be obtained if you are building your. own home. The VA itself doesn t actually supply. the loan- they insure the loans provided by the lender. And if you are thinking of refinancing your current mortgage, a VA loan is almost certainly going to give you a lower interest rate. - and lower monthly payments.

Those eligible for a VA loan include active duty veterans. discharged during World War II or after. Selected Reserve. Active duty personnel with at least. six months of active service as well as members of the National Guard and. Around 80% of those who qualify for a VA loan would. not be able to qualify for a regular loan. If you aren t sure whether you. qualify or not- contact a VA loan specialist or a mortgage broker. If you think you qualify for a VA loan, your first step is to. complete a Certificate of Eligibility. Incidentally, the VA puts no maximum on the amount that a person can. borrow.

Once you are qualified for a loan, finding a lender is fairly. easy. This is determined by the bank or mortgage company. A quick search on line will give dozens of lenders who participate. Compare products and services, just as you would with a. conventional mortgage. The VA also has ten regional offices located throughout the country that. can provide advice, as well as provide a list of recommended lenders. in your area. Not all lenders are qualified- or willing- to offer a VA loan, although most larger lenders do offer the service. FHA loans, they generally offer VA loans too.

If a lender offers. The VA has strict. requirements regarding potential lenders- the size of facility and number. of staff, financial stability and knowledge of staff. If you are. qualified- or think that you are- be sure to take advantage of the VA. program. As a veteran, you are eligible for several benefits- an. affordable mortgage is certainly one of the most important.

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