The History of the VA Loan Program
After World War II, an increase in the U.S. Veteran population pushed Congress to pass large numbers of new benefits for war Veterans—the most significant of which was the World War II GI Bill, signed into law June 22, 1944. The VA Loan Program, a byproduct of the GI Bill, was created to help more Veterans achieve the American dream of homeownership. The U.S. Department of Veteran Affairs insures VA loans, making it less risky for lenders to offer loans to those employed in military services. Therefore, veterans can get affordable rates and terms despite less credit history or lower credit ratings from lenders participating in the Veteran Affairs (VA) loan program.
VA loans are specifically tailored for veterans and are among the easiest mortgages to qualify for while requiring a smaller down-payment than many other loans. Here’s what you can expect from a VA loan:
- Easier credit qualification – while minimum credit scores vary based on the exact loan requirements, borrowers typically need a credit score of 620 or higher to get the best rates
- No Down Payment – Purchase up to $510,400 without a down payment in most parts of the country
- No PMI Required – Unlike FHA and conventional loans with less than 20% down, VA loans do not require PMI
- Most members of the military, veterans, reservists and National Guard members are eligible to apply
- Active members qualify after six months of service
Contact us for more information, personal quote or a personalized pre-qualification letter to go along with your purchase offer.