VA Loan Basics

Posted by Laine Smith on 7/3/14 3:16 PM

Topics: Home Buying

As you celebrate Independence Day this weekend, remember the men and women who have served our country in the armed forces, fighting for our freedoms.

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The VA Loan was established in 1944 when the GI Bill was signed into law by Franklin D. Roosevelt. The program was built to help servicemen who had missed an opportunity to build credit and a financial nest egg while away at war.

Veterans benefit from many aspects of the VA loan program, including:

  • No down payment
  • No mortgage insurance premiums
  • Lower interest rates, in most cases
  • Closing costs comparable to other financing options

Prudent underwriting guidelines help veterans not only make home purchases but maintain their mortgage. Income requirements give lenders and the VA a greater sense of what a borrower can afford.

To be eligible for a VA-guaranteed loan you must meet credit and income standards and provide a valid Certificate of Eligibility (COE). To obtain a COE, you must have been honorably discharged and meet certain service requirements.

If you or someone you know is a veteran looking to make a home purchase, talk to one of our loan officers about a VA loan.

Want more information on homebuying? Our Mortgage 101 Handbook is a great go-to for all of your homebuying questions.

 Download: Mortgage 101 Handbook

 

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

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