VA Mortgage loans are designed to help veterans and active duty military personnel purchase a home. There are no private mortgage insurance requirements and VA Mortgage loan programs offer less stringent credit requirements than conventional mortgage loans. The VA Mortgage loan program also has a low or no down payment option.
What is a VA Mortgage Loan?
A VA mortgage loan is a federally guaranteed mortgage loan for veterans that does not require a down payment or private mortgage insurance. This is an excellent benefit for eligible veterans. Private mortgage insurance is usually required if a down payment of 20% is not provided – with the VA mortgage loan both the down payment and private mortgage insurance requirements are waived for veterans.
Which Veterans are Eligible?
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 during peacetime are eligible to apply for the VA Mortgage Loan. 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. There is a six-year requirement for National Guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.
All veterans must qualify for the VA mortgage loan – they are not automatically eligible for the program. The guaranty means the lender is protected against loss if you or a later owner fails to repay the VA mortgage loan.
Other Veteran Resources
If you are a United States veteran you are probably already familiar with the Department of Veterans Affairs website, if not, it is a great resource for finding out about your veterans benefits. Click here to access the Department of Veterans Affairs Home Page.