By: Quin Linich

Construed with the aim of rewarding American Veterans, a VA loan is the kind of mortgage loan that helps veterans, their survivors and families realize the dream of home ownership. This is done with the help of the U.S. Department of Veteran Affairs who guarantee the loan provided by qualified lenders.

The loan guarantee program, which came into existence after the United States Congress passed the Servicemen’s Readjustment Act in 1944, has been one of the most important benefits that were distributed under the act. The guarantee makes sure that the lender gets his money back while at the same time removing the clause of down payment for the veteran.

Down to the details…

Let’s talk about eligibility conditions and what makes a VA loan special.

Considering the fact that more than 27 million service personnel and veterans are eligible for the VA loan, the factors deciding who is eligible and who is not become quite important as mentioned below:

Veterans must meet these conditions: (Short list)

• Veterans must serve for a period of 90 days during wartime or 181 days continuously during peacetime on active duty and possess honorable discharge.
  

• Must have two years of service if the veteran enlisted in the forces after Sept. 7, 1980 or served as an officer and enlisted after Oct. 16, 1981.
  

• National Guard and Reservists must have 6 years of service to become eligible for the VA loan and meet all required weekend drills etc.

If you don’t fall into any of the above categories please consult our complete list of VA eligibility standards found at: VA loan eligibility guidelines

100% Financing and NO mortgage insurance!

The VA loan guarantee in essence makes a veteran eligible for financing up to 100 per cent with no private mortgage insurance.  Maximum loan benefits are now currently $417,000 and over 1 million in select areas.

The key point is that you have to qualify for the VA loan and that you do not just automatically become eligible for it. These VA loans are funded by qualified lenders such as banks and mortgage companies. Also, VA loan benefits can be used only when you are purchasing or refinancing a primary residence.