VA Home Loan

2020 has been one for the record books in regards to home sales and mortgage originations. For Veterans and active military personnel, the year is unprecedented – with 1.2 million home loans tallying $363 billion in homeownership opportunities – guaranteed by the U.S. Department of Veterans Affairs. The figure represents the most home loans ever assured in a single year by the government entity.

It’s no secret that historically low interest rates and a shift from urban centers to sprawling suburbs due to the ongoing pandemic have boosted the housing market. For our nation’s bravest – the men and women who put their lives on the line to protect the freedoms we enjoy – they have a truly unique opportunity here to leverage the current real estate climate with an exclusive incentive on purchasing a home.

What is a VA Home Loan?

The Veterans Affairs (VA) home loan – established as part of the Servicemen’s Readjustment Act of 1944 after World War II – is a mortgage loan available to past and present military members and widowed spouses to help achieve homeownership.

This home loan is an attractive option because of its benefits for Veterans and active service members, including an easy qualification process and often no down payment required. For the most part, VA loans have been underutilized, with only six percent of the 21 million Veterans and service members having applied for the mortgage in the last five years.

VA loans are provided through private lenders, such as a bank or mortgage company, including Amerifirst, but unlike conventional loans, the VA guarantees a portion of the loan, which allows lenders to offer more favorable terms.

VA Home Loan Requirements: 

  • Active duty service member or an honorably discharged veteran with 90 consecutive days of active service during wartime or at least 180 days during peacetime.
  • Member of the National Guard or Selected Reserve with more than six years of service.
  • Spouse of a military member who died in the line of duty or military-related incident.
  • Spouse of a prisoner of war or military member who is missing in action.

Benefits of VA Loans

The mission of the VA home loan program – from 1944 to today – is to ensure our Veterans, military personnel and their families have access to affordable homeownership. By clearing major roadblocks along the home buying process, such as down payments, credit score requirements and potentially high interest rates, military members can achieve the American dream.

Often No Down Payment

The main draw of a VA loan is often no down payment is required unlike conventional loan. However, a borrower can put money down on a new house to lower the interest rate.

No Limit on Borrowing

Conventional mortgages have a cap of how much you can borrow – that is not the case with a VA loan. The lender will determine the amount based on the borrower’s financial profile. It is important to note that there is a limit though on the amount of liability the VA takes on.

Benefits Never Expire

Once a Veteran or service member becomes eligible, their benefits never go away. Whether you have a client who proudly served during the Vietnam War or in Afghanistan, their eligibility is forever established.

Use As Many Times As Needed

VA loans aren’t one and done. As long as they are paid off each time, a borrower can use the benefit multiple times.

For Veterans and active service members, a VA loan is an opportunity to experience the American dream of homeownership. With often no down payment or borrowing limit, our nation’s bravest can purchase a home without fighting process barriers. To learn more about benefits Veterans can receive, we encourage you to visit the U.S. Department of Veterans Affairs.

*Not all borrowers will qualify. Contact us for more information on fees and terms. Not intended as legal, financial, or investment advice. Contact your financial representative for more information.

“Ten things most Veterans don’t know about VA home loans.” U.S. Department of Veterans Affairs. October 2016. https://www.blogs.va.gov/VAntage/31825/ten-things-veterans-dont-know-va-home-loans/

“VA guarantees more than 1 million home loans in record year.” U.S. Department of Veterans Affairs. November 2020. https://www.blogs.va.gov/VAntage/80503/va-guarantees-1-million-home-loans-record-year/