Published On: August 20th, 2020|458 words|1.5 min read|
Are you in the market for a new home? Or maybe just considering buying a home in the future? You’re in luck! The VA home loan is available for eligible Veterans, service members, and certain surviving spouses. And, no down payment is ever required by VA.
VA backing means that you will save even more over the life of the loan; for example, no Private Mortgage Insurance (PMI) is ever required on VA-guaranteed loans. That often amounts to a cost savings of hundreds of dollars per month. Imagine what you and your family can do with that extra money!
VA has guaranteed over 25 million home loans between the program’s inception in 1944 to June 2020. Even today, the borrowers using their VA home loan guaranty enjoy outstanding benefits, such as limited closing costs and competitively low interest rates.
Over 1,500 lenders offer the VA-backed home loan. Be sure to talk to several so you can compare rates, fees, and closing costs. When ready, you can negotiate these costs and pick the lender with the terms that are right for you.
And don’t worry about closing on time. VA-approved appraisers can estimate property value just as timely as you’d find with any other mortgage loan. Our notice of value (NOV) gives you insight into what the home is worth. Under VA rules, you don’t have to buy a home valued below the contract price. You can decide to renegotiate or walk away from the sale.
We want to keep you in control of your financial decision. Put simply, the VA home loan can put you in the home of your choice while saving you lots of money! So don’t pass up your chance to save thousands of dollars on the purchase of your home. Choose VA!
History of the VA home loan guaranty
The VA home loan benefit was created through the 1944 Serviceman’s Readjustment Act, which is known more colloquially as the “G.I. Bill.” The Act, signed into law by President Franklin Delano Roosevelt on June 22, 1944, represents a pillar of the benefits earned by U.S. military service members and Veterans through their commitment and service to the country. It is among the most widely praised and popular benefits administered by VA and has helped put millions of eligible service members and Veterans into their piece of the American Dream: their home.
For more information on the VA home loan benefit, eligibility requirements, and how the VA loan guaranty can help save you thousands of dollars on the purchase or refinancing of your home, visit VA’s website, here: https://www.benefits.va.gov/homeloans/.
Eric Jones is a strategy, support, research and communications (SSRC) specialist with VA’s Home Loan Guaranty Service.