What is a VA Loan?
The VA Loan began in 1944 through the original Servicemen's Readjustment Act, also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans.
VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favourable financing terms.
Who is eligible for a VA Loan?
The following are the conditions for the VA Loan eligibility
• World War II - September 16, 1940 to July 25, 1947
• Korean Conflict - June 27, 1950 to January 31, 1955
• Vietnam Era - August 5, 1964 to May 7, 1975
• Persian Gulf War - Check with VA regional office for specific eligibility.
• Afghanistan and Iraq - Check the VA's Web site for eligibility guidelines for current service in Afghanistan and Iraq.
• July 26, 1947 to June 26, 1950
• February 1, 1955 to August 4, 1964, or
• May 8, 1975 to September 7, 1980 (enlisted) or to October 16, 1981 (officer)
• Enlisted veterans whose service began after September 7, 1980, or officers whose service began after October 16, 1981, must normally have served at least two years.
Reserves and National Guard
Other Qualifying Service
• Certain US citizens who served in the armed forces of a government allied with the United States during World War II.
• Surviving spouses of eligible persons who died as the result of service or service-connected injuries. The surviving spouse must not have remarried.
• The spouse of any member of the Armed Forces serving on active duty who has been listed as a prisoner of war or missing in action for more than 90 days.