VA HOME LOANS
The Veterans Benefits Administration (VBA) provides federal guarantees of home loans for qualified applicants. To be eligible for a VA-guaranteed home loan, veterans must have served on active duty in the Army, Navy, Air Force, Coast Guard, or Marines.
The specific service requirements will vary, depending on the time period during which a veteran served. A certificate of eligibility is required to obtain a VA loan, and the loan can be obtained through any mortgage lender who participates in the VA home loan program. The VA-guaranteed home loan is one of very few 0% down payment loans available in the United States (the USDA Rural Housing Loan is another).
KEY POINTS OF A VA LOANS
VA loans assist active service members, veterans, and surviving spouses to become homeowners. The individual presents a certificate of eligibility from the VA to the lender in the course of a loan application. Although some of the lender's own underwriting requirements must still be met, in most cases, VA loans are easier to qualify for than conventional loans.
The Veterans Administration offers a home loan guaranty benefit and other housing-related programs to help qualified veterans or their eligible family members buy, build, repair, retain or adapt a home for personal occupancy. VA loans offer up to 100% financing on the value of a home. VA loan recipients do not have to be first-time home buyers. Also, they may reuse the benefits and assign the loan to another qualifying person.
The terms of VA loans are quite generous, compared to other mortgages and even other federal loan programs. Among the benefits:
VA loans, FHA loans, and other loans insured by departments of the United States government have securitization through the Government National Mortgage Association (GNMA), which is also known as Ginnie Mae. These securities carry the guarantee of the United States government.
Types of VA Loans
The VA offers several types of mortgage loans to help veterans and their families.