Veterans Receive Low-Interest Rate Mortgage Loans to Acheive Their Dreams of Owning a Home

Veterans Receive Low Interest Home Loans as a "Thank You" for Serving the Country

As a way of thanking veterans who have served their country, the U.S. helps them to achieve their dreams of buying a home.

President Franklin D. Roosevelt originally signed into law the Servicemen’s Readjustment Act of 1944 – also known as the GI Bill – to provide veterans and their families with assistance in housing. The bill offers veterans the chance to purchase a home with no money down and low mortgage rates.

A VA loan can be used for both home purchases and refinancing. A VA refinance loan gives veterans the opportunity to lower their current mortgage interest rates. A VA home loan gives veterans the chance to buy a home at a rate they can more easily afford.

Eligibility Requirements:

You must have served on active duty in the military for a minimum of 90 days during wartime, or at least 181 days during peacetime to take advantage of a VA home or refinance loan. Additionally, you must not have been released on dishonorable discharge.

More specifically, veterans who enlisted and began to serve the U.S. military after September 7, 1980, or served as officers beginning their service after October 16, 1981, must meet a minimum service requirement of two years. The requirement for the National Guard as well as reservists is six years of service.

Spouses of veterans who are deceased are also eligible to receive VA home loans under certain circumstances.

Understanding Rates and Conditions:

Private lenders – banks, mortgage companies, and the like – offer VA guaranteed loans of up to 25 percent of the borrowed amount up to $104,250, which means you can secure a home loan of up to $417,000 with a low VA rate.

Getting a VA Home Loan:

Qualification requirements are more lenient than with a conventional loan, however applicants will still need to provide an extensive amount of documentation when applying for a VA home or refinance loan. The documentation required usually includes:

• personal identification – drivers license and social security card
• complete tax returns from the past two years
• pay stubs from the past month (self-employed individuals need the past years’ tax returns and YTD Profit and Loss Statement.)
• savings documents – last three months’ bank statements, most recent statement from 401K, and other significant investments.
• credit information including recent statements
• documentation of any loans you have co-signed or history of bankruptcy
• DD214 (Report of Separation Form)
• divorce information if applicable