See All Available Loan Programs

Exactly what is a VA Loan?

The VA Loan became known 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 has provided veterans with a federally guaranteed home loan with no down payment. This loan was designed to provide housing and assistance for veterans and their families, making the dream of home ownership became a reality for millions of veterans.

Eligibility for the VA loan is defined as Veterans who served on active duty and have an honorable discharge after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. There is a two-year requirement if the veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981. There is a six-year requirement for National guards and reservists with certain criteria and there are specific rules concerning the eligibility of surviving spouses.

The VA will guarantee a maximum of 25 percent of a home loan amount up to $113,275, which limits the maximum loan amount to $453,100. Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. Being a veteran doesn't make a homebuyer automatically eligible for a home loan, you must meet both service requirements and credit/income requirements to be eligible.