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VA Home Loans

The Veteran Administration (VA) Loan was initiated in 1944 under the Servicemen's Readjustment Act—more commonly known as the GI Bill. Signed into law by President Roosevelt, the VA loan was (and is) designed to provide Veterans with a federally guaranteed (protected against loss if the loan defaults) home loan with no down payment. VA loans are provided by private lenders such as banks and mortgage companies to eligible Veterans for the purchase of a homes.

Since the VA mortgage loan is guaranteed, lenders typically offer a lower interest rate, better terms, and reduced closing costs than a conventional home loan. VA home loans are available in all 50 states. A VA loan may also have reduced closing costs and no prepayment penalties.

Who is eligible for a VA Loan?

Wartime/Conflict Veterans

Veterans who served at least 90 days and were not dishonorably discharged or those who served less than 90 days who were discharged for a service-connected disability during any of the following periods:
World War II – September 16, 1940, to July 25, 1947
Korean Conflict – June 27, 1950, to January 31, 1955
Vietnam War – August 5, 1964, to May 7, 1975, or February 28, 1961, to May 7, 1975, if you served in the Republic of Vietnam
Persian Gulf War – August 2, 1990, to Present; Check with the Veterans Administration Office (www.va.gov) for additional minimum active-duty requirements.
Afghanistan & Iraq – Check with the Veterans Administration Office (www.va.gov) for minimum active-duty requirements.

Peacetime Service

Served for a minimum of 181 days of continuous active duty with no dishonorable discharge or less than 181 days if discharged for a service-connected disability during the below periods:
July 26, 1947, to June 26, 1950
February 1, 1955, to August 4, 1964
May 8, 1975, to September 7, 1980 (Enlisted); or to October 16, 1981 (Officer)
Enlisted Veterans whose service began after September 7, 1980, and officers whose service began after October 16, 1981, must have completed 24 months of continuous active duty and been honorably discharged. Check with the Veterans Administration Office (www.va.gov) for additional minimum active-duty requirements.

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.

Active Duty

Service members on active duty for 90 continuous days

What type of home can I buy with a VA loan?

A VA home loan must be used to finance your primary residence located within the United States or one of its territories. The following types of homes can qualify for a VA Loan:
Existing Single-Family Home
Townhouse or Condominium (must be a VA-Approved Project)
New Construction Residence
Manufactured Home or Lot
Home Refinances and Certain Types of Home Improvements

How do I apply for a VA-guaranteed loan?

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.

If I have already obtained one VA Loan, can I get another one?

Yes. If you paid your prior VA Loan and sold the property, you can have your eligibility for the VA Loan Program restored. Also, if you have paid off the home but still own it you may be able to have your eligibility restored one time.

To regain restoration of the VA Loan eligibility, you must send the Veterans Administration a completed VA Form 16-1880 to the VA Eligibility Center. A paid-in-full statement from the former lender or a copy of the HUD-1 settlement statement is satisfactory. To prevent delays in processing, it's advisable to include evidence that the prior loan has been paid off, and if applicable, the property was sold.

What are the benefits of a VA Loan?

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
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