The VA loan began in 1944 through the original Servicemen’s Readjustment Act, also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans.
VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you default. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.
If you are looking to purchase a home with no money down, you’re in luck if you qualify. VA mortgage loans can be guaranteed with no money down with an added bonus – no private mortgage insurance requirement with a VA guaranteed loan. The VA even offers help for those looking to refinance.
Don’t investigate these benefits without asking for information about the interest rate reduction loan, part of something called the Streamline Refinancing Program, which allows veterans to refinance at little or no expense to them. Contact me and I will connect you to a local lender who can give you all the details you’ll need to take full advantage of your VA home loan benefits.