VA Loans Help Servicemembers, Veterans and Eligible Surviving Spouses

The initial creation of VA Home Loan Benefit was a historic move in the effort to create homeownership for armed forces members. The original Servicemen’s Readjustment Act was passed by the United States Congress in 1944, which opened the doors for servicemembers to more easily achieve access to homeownership. Although the VA home loan has had numerous changes over the course of decades, and in times of market necessity, the VA home loan has stood the test of time and remains one of the safest methods for active duty and veterans to obtain a home.

Historically, VA loans have the lowest default rate amongst mortgage types. Today the VA home loan is more widely used as greater clarity on its purpose and use has come into focus in addition to the increasing amount of service members and veterans who have sought it out as the means to achieving home ownership.

• The Veterans Administration is authorized to guarantee or insure home, farm, and business loans made to veterans by lending institutions
• Despite common misconceptions, the Veterans Administration does not fund home loans, they only insure VA loans issued by lenders and financial institutions.
• Until 1992, the VA loan guarantee program was available only to veterans who served on active duty during specified periods. However, with the enactment of the Veterans Home Loan Program Amendments of 1992 (Public Law 102-547, approved 28 October 1992), program eligibility was expanded to include Reservists and National Guard personnel who served honorably for at least six years without otherwise qualifying under the previous active-duty provisions.
• Contrary to popular belief, the VA home loan benefit can be used more than one time (called “subsequent use”).
• It is even possible to have more than one VA loan at a time, contingent upon orders and extenuating circumstances.

Download from Mortgage Heroes: Chula Vista VA Loan

From VA: https://www.benefits.va.gov/homeloans/documents/docs/history.pdf

From Military.com: https://www.military.com/money/va-loans/history-of-the-va-loan.html

If you would like to speak with our team about your home loan questions, please complete the form below. You can also start your loan application online by APPLYING NOW.

Rates & Fees Disclosure:
^‡ The payment on a $300,000 30-year fixed-rate VA loan at 3.000% with a 80% loan-to-value ratio is $1,292.01 with 0 (zero) origination points due at closing. The annual percentage rate (APR) is 3.235%. Payment does not include tax and insurance premium impounds. The actual payment amount will be greater. By refinancing your existing loan, the total finance charges may be higher over the life of the loan. Some state and county maximum loan amount restrictions may apply. Appraisal fee of $600, Processing Fee of $895, Underwriting Fee of $795 included in APR calculations with borrower paying 0 (zero) loan origination points.

^‡ Based on Mortgage Heroes internal data.