VA Loans

 

What is a VA Loan?

During the midst of the Second World War, on June 22, 1944, President Franklin D. Roosevelt, signed the Serviceman’s Readjustment Act into law, more commonly known as the G.I Bill.  An important provision of the Bill was low interest, zero-down payment home loans for servicemen.  Many returning veterans took advantage of these offerings, and millions of American families to move out of urban apartments and into suburban homes, during the Post War Housing Boom.

VA Loans are designed to offer long-term financing to veterans. VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration.

 

Who is Eligible for a VA Loan?

The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.

Generally, in order to receive VA benefits and services,  the Veteran’s character of discharge or service must be under other than dishonorable conditions (e.g., honorable, under honorable conditions, general).  However, individuals receiving undesirable, bad conduct, and other types of dishonorable discharges may qualify for VA benefits depending on a determination made by VA.

In 2012 eligibility for Surviving Spouses was expanded, by the “Honoring America’s Veterans and Caring for Camp Lejeune Families Act”

 

What are the Benefits of a VA loan?

Like all mortgages there are stipulations to the Maximum Benefits that one can receive.  But since VA is a niche market, general can benefits include:
● Potentially 100% financing without private mortgage insurance or 20% second mortgage.
● A VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the VA.
● On Purchases, Veterans and Eligible Surviving Spouses, may borrow up to 100% of the sales price or reasonable value of the home, whichever is less.
● On Refinances, Veterans and Eligible Surviving Spouses, may borrow up to 90% of reasonable value in order to refinance where state law allows.

 

Are you Active Duty Personnel, a Veteran, or Eligible Surviving Spouse?

Click Here to get started on your VA Loan Today!!!