Va Loans In Depth

Va Loans In Depth



VA Loans in​ Depth
What is​ a​ VA loan and who qualifies?
In 1944 the​ U.S .​
congress passed the​ GI Bill of​ Rights to​ help those who served in​ the​ armed forces readjust to​ civilian life .​
One section of​ this bill provided loan programs with no money down and low closing costs to​ veterans .​
These loans,​ called VA loans,​ for the​ Veteran’s Administration are not given by the​ Veteran’s Administration .​
The government determines the​ basic guidelines for the​ loans and then guarantees the​ loan amount to​ the​ lender in​ case the​ borrower defaults.
To be eligible to​ receive a​ VA loan you​ must meet one of​ the​ following requirements:
· Honorably discharged wartime veteran of​ WWII,​ Korean War,​ or​ Vietnam with at​ least 90 days active duty.
· During peacetime,​ July 1974-September 1980,​ serve 181 days continuous active duty (may be less if​ discharged for a​ service-connected disability).
· For service dates after 1980,​ complete 24 months of​ continuous active duty or​ 90 days in​ Persian Gulf or​ Iraq.
· Certain National Guard and Reserve troops may be eligible if​ they completed 6 years in​ an​ active National Guard unit that had weekend drills and active duty training.
· Spouses of​ veterans may be eligible if​ the​ veteran’s death was caused by a​ service connected injury or​ ailment.
· U.S .​
citizen who served in​ an​ armed force for a​ country allied with the​ U.S.
Proof of​ service is​ required to​ apply for VA loans .​
To see what proof is​ needed,​ and to​ find answers to​ other VA loan questions,​ visit the​ VA website at​ www.va.gov.
Being eligible for a​ VA loan does not guarantee that you​ will receive one .​
Your credit history and other factors are still evaluated,​ but typically,​ the​ guidelines are less stringent than with competitive conventional loans .​
Additionally,​ VA loans usually offer better rates than competitive conventional loans with little money down,​ and there are certain closing costs that buyers are not allowed to​ pay with a​ VA loan.




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