VA loans allow eligibile veterans and active duty servicemembers a loan program where you can finance 100% of the homes value and purchase the property with no money required for a down payment.

VA Loans

VA guaranteed loans became known in 1944 through the original Servicemen's Readjustment Act known as the GI Bill of Rights. Signed into law by President Franklin D. Roosevelt providing veterans a federally guaranteed home with no down payment.

Eligibility for a VA loan is Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days of service during peacetime. There is a two year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981. National Guard and Reservists have a six year requirement with certain criteria. Specific rules apply in regards to eligibility of surviving spouses.

VA loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA). 

Besides no down payment required here is a list of other benefits of a VA loan:

• Closing costs comparable – and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.