December 10th, 2018


Buying a home is a big step for anyone, and it takes time, effort, and -of course - money. If you're buying a home loan and are a US veteran, using the VA home loan program could be the best path to home ownership that you can take. It's something that's well worth a closer look for any current or former military member.

What Is The VA Home Loan?

The VA home loan is a type of loan that is only for veterans and active duty service members. They have been around since 1944 when they were introduced as a way for returning soldiers to transition into being homeowners after the war.

It's important to note that VA home loans aren't actually issued by the government. Instead, traditional home lenders offer the loans, but the government guarantees them. This alleviates much of the risk that some borrowers can bring to a loan, which in turn makes it more likely that they will be able to qualify due to less stringent requirements. 

VA loans are designed to make it easier for veterans to qualify for, letting them secure the loan without huge down payments and still receive very good terms. The VA loans are structured very similarly to a traditional loan, and as such, they offer plenty for you to appreciate.

What Are The Advantages Of The VA Home Loan?

There are several major advantages that those using a VA home loan may be able to receive over a traditional loan. Some of the main benefits include the following.

No Down Payment - Traditional loans generally require borrowers to pay 20% of a home's purchase price as a down payment. But VA loans don't have that requirement, and it's possible to secure one without having even a dollar as a down payment.

No Mortgage Insurance - You also don't have to pay mortgage insurance on your loan if you don't make down payments. Home loans often come with insurance requirements that borrowers must pay, and even if they're rolled into the cost of the loan they can be expensive. VA loans don't require borrowers to do this.

Low-Interest Rates - You still get low-interest rates with a VA loan, and it's common for rates to be comparable to those that you would get with a traditional loan. In some cases, you even get lower rates than a traditional mortgage thanks to the security offered by the VA guarantee.

Qualifications - It's also easier overall to qualify for the loan. You'll have to show a steady income and decent credit scores, but the fact is that overall you'll be able to qualify easier and get your home loan.

There are some fees associated with the VA loan. In particular, it will require a separate appraisal from an independent inspector before you can buy the home, and there is a funding fee that is charged depending on a number of factors. But, this fee can be bundled into the loan and paid out over time.

Who Can Qualify?

Any active service member, National Guard member, reservist, and former veteran can qualify. Along with veterans, the spouse of a soldier killed during active duty is also eligible for the VA home loan.

To get your loan, you'll need to begin by getting a certificate of approval from the VA. Then, that certificate is given to the lender you're using to prove that you are qualified for the VA loan.

If you're looking for a home and are a veteran, few things can match the many benefits that the VA loan program can offer. We can help you get your loan and your home.