Learning About Veterans Affairs Loans


American Veterans Affair Loans offer long-term financing options for American veterans and possibly their spouses. A Veteran Affairs direct loan program ensures that veterans that meet certain requirements have the financing that they need to purchase a home.

Veteran Affairs loans are an option for veterans that do not qualify for traditional financing. Qualified veterans may be able to purchase a home without having to put a down payment on it. The Veteran Affair Loan program was created in 1944 by the United States government to help give veterans the ability to purchase a home.

Veteran Affair Loans are available to National Guard members, reservists, veterans, active duty service members and spouses of military members who have passed away that meet the requirements in place to qualify. To qualify for a Veteran Affair Loan there are a variety of requirements that need to be met including:

  • You have served 90 days during the war
  • You have served for 181 days during peace time
  • You have more than six years of service in the National Guard
  • You have more than six years of service in the Reserves
  • You are the spouse of a service member who passed away on duty
  • You are the spouse of a service member who passed away due to a service-related injury or accident

The Department of Veterans Affairs will be able to help you determine if you are eligible for a Veterans Affairs Loans.

Benefits

A Veterans Affairs Loan has many benefits for those who qualify including:

  • No money down - A qualified borrower can finance the complete amount of their home’s total value without having to deposit a down payment.
  • No need for private mortgage insurance - Loans are backed by the Federal government so there is no private mortgage insurance required.
  • Government support - Work with the Federal government for flexibility and financing of your loan
  • Low interest rates - Qualified borrowers have access to interest rates that are competitive and usually lower than interest rates offered at most major financial institutions

Purchase Loans

A Veterans Affairs purchase loan is available to active and non-active military members and their spouses if they meet certain qualifications. A Veterans Affairs loan does not require a down payment and is guaranteed by the government. A purchase loan can help you purchase a home with favorable terms including:

  • No private mortgage insurance required
  • No down payment required
  • Limits the amount charged for closing costs
  • Seller must pay closing costs
  • No penalty fees for paying off the loan quickly
  • Assistance and support provided by the government

Refinance Loans

The Veterans Affairs Home Loan program also offers a variety of refinancing options for those who qualify. The program helps veterans and their spouses take advantage of reduced interest rates which decreases their monthly mortgage payment. Another benefit of refinancing is that it allows military homeowners to receive cashback. This money can be used to make home improvements, renovations and pay off other areas of debt. A military homeowner can find out if they qualify for a refinancing loan by contacting a Veterans Affairs loan officer. 

Streamline Loans

A streamline loan is available to qualified Veterans Affairs homeowners to refinance. It is a quick and easy refinancing option that allows qualified veterans to refinance their existing Veterans Affairs loan. This refinancing option is through the VA Interest Rate Reduction Refinance Loan and has a wide variety of benefits. This option allows loans to be refinanced at a lower rate. It can also allow for a mortgage to be switched from adjustable to fixed rates. A Veterans Affairs loan officer will be able to determine if your specific situation would benefit from a streamline loan.
If you think that you may qualify and benefit from any of the Veterans Affairs loan options listed above, you should contact a trustworthy Veterans Affairs loan officer. You will be able to determine if you meet the set qualifications and what type of loan may best benefit your situation.