VA HOME LOANS

The VA Loan provides veterans with a federally guaranteed home loan which may require no down payment for those with full entitlement. This program was designed to provide housing and assistance for veterans and their families.

The Veterans Administration provides insurance to lenders in the case that you default on a loan. Because the mortgage is guaranteed, lenders will offer a lower interest rate and terms than a conventional home loan. VA home loans are available in all 50 states. A VA loan may also have reduced closing costs and no prepayment penalties.

Additionally, there are services that may be offered to veterans in danger of defaulting on their loans.

Eligible borrowers may include:

• Military veterans. Must have served in active duty for:
• 90 days during war time OR 181 continuous days in peace time.
• Active service men and women. Service includes:
• 24 continuous months or more OR a full period of active duty, but not less than 90 days during wartime or 181 days in peacetime.
• Certain Military Reserves and National Guard troops may be eligible, if they:
• Completed six years as member of active unit.
• Received an honorable discharge and retired.
• Have a service-related disability.
• Were “activated” for at least 90 days during the Gulf War era (August 1990 to present).
• Other potential borrowers include:
• A widow/widower of a veteran who died while serving, or was declared MIA or POW, or service personnel who left the military because of a Reduction in Force after 20 months of a two-year enlistment