Veteran Home Financing

The VA Loan was established to help veterans achieve the American dream of home ownership. Created in 1944 under the Servicemen’s Readjustment Act, President Franklin Delano Roosevelt signed the piece of legislation which let veterans purchase homes with no down payment. The GI Bill contributed greatly to the growth of the economy.

There are currently 25.5 million veterans and active personnel eligible for VA financing. To be eligible, a person must have served on active duty for a minimum of 90 continuous days during wartime or 181 continuous days during peacetime. His or her discharge must have been honorable. If the person began service in the 1980s, there is a 2 year requirement for service. For the national guards, reservists, and surviving spouses, there are additional criteria.

The VA loan will cover a maximum of 25 percent of the home loan but cannot exceed $104,250. Therefore, the entire loan may not be greater than $417,000.

These loans are given through private lenders. Banks, savings & loans, or mortgage companies may grant the loans to veterans. The homes purchased with these loans must be used for personal residences. A guaranty protects the lender from loss in case of defaulting on payments. This guaranty replaces the typical down payment required when purchasing a home.

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If you have served our country as part of the military or are currently in the service, you may be eligible for a VA loan to finance your new home. For more information about home financing and refinancing, visit the experts at Texas Mortgage Loans today.