Veterans Affairs or VA loans are housing loans offered to eligible VA members, veterans, and surviving spouses. According to 1unitedmortgage.com, this type of loan is more lenient on the application requirements. This allows for a simpler process and faster loan release.
The U.S. Department of Veterans Affairs guarantees VA loans as part of the veterans’ benefits. It helps qualified members to finance the sale, building, repair, or retention of their home. The borrower does not have to put up a down payment, and mortgage insurance is also not required for VA loans.
The loans can cover up to 100% of the cost of the home. It can be more than the property’s reasonable value due to funding fees, which can be up to 3.3%. The largest loan amount with no down payment depends on the location and is usually up to $453,100. This may go as high as $721,050 in areas specified as “high-cost counties.”
For the Veterans
The history of the VA loan starts at the end of World War II, which allowed veterans to borrow money for homes and farms. Since its start, the VA has insured more than 20 million loans. In 1970, the coverage was expanded with the removal of termination dates for applying for housing loans. The same year saw the introduction of an amendment allowing for the guarantee of mobile homes.
The Veterans Housing Benefits Improvement Act of 1978 added more benefits. In 1992, the program was available only to those who had served on active duty during specific years or periods. Reservists and members of the National Guard who have served honorably for more than six years were also given this benefit.
The VA loan is a big help to veterans, active service members, and qualified spouses. They can take out affordable home loans to buy their own home, or improve their existing home at affordable rates even without a down payment.