va home loan

VA Home Loan

With more than 29 million veterans and service personnel eligible for VA financing, this loan is attractive and has many advantages. Eligibility for the VA home loan is defined as 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. 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.

VA will guarantee a maximum of 25 percent of a home loan amount up to $60,000, which limits the maximum loan amount to $240,000. Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee of 2.0% of the loan amount (2.75% for reservists) may be borrowed. All veterans must qualify, for they are not automatically eligible for the program.

VA home 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 favorable financing terms.

Thousands of companies are offering VA loan quotes online. You can search for VA home loan quotes online to get the best loan from the best comforts of your home.