A va home loan is essentially a type of mortgage loan that is granted to wartime veterans. Originally, VA loans were only granted to veterans and active duty personnel but after the 1992 amendment of the Veterans Home Loan Program, other personnel such as those who served with the National Guard have been granted eligibility to apply for such loans albeit with higher funding fees than active duty veterans. Spouses of veterans and other personnel are also eligible to apply for VA loans.
How Much Can You Borrow?
Under the program, eligible borrowers can secure loans directly from lenders for housing, renovations, farming, or to use as business capital. Veterans can receive 100% financing under the VA loan program. It is worth noting, however, that the maximum amount typically granted to veterans is $240,000. According to bankrate.com, while this amount is adequate to finance most properties in middle-class and suburban areas, those who are living in upper scale neighborhoods may need to look at other options that offer higher amounts.
According to the US Department of Veterans Affairs, those who want to apply for VA loans must first secure a certificate of eligibility. Applying for a certificate can be accomplished online at the VA government website or directly through a lender when you apply for your VA loan. Most lenders offer VA loan programs, making it easier for eligible veterans to apply.
Benefits of VA Loans
- No Downpayment required
- Limited Appraisal and Service Fees
- Availability and Ease of Application
- No Private Mortgage Insurance Required
If you are in the market for a new home or you are looking for refinance options for your existing mortgage, applying for a VA home loan is one of the best options available, provided that you are eligible. The VA home loans program was setup to help veterans, active duty and reserve duty personnel, members of the national guard, and their spouses to secure home loans with flexible payment terms. It is one of the major benefits offered to veterans for honorably serving the armed forces.
Source: US Department of Veterans Affairs
Millions of veterans have benefited from the VA loan program since it was first introduced in 1994 under the G.I. bill.