VA Home Loan FAQs

It’s hard to think of a good way to thank those who serve on behalf of their country in the military. One of the ways the Veterans Administration (VA) tries to do so is through its VA Home Loan programs, which offer veterans lower-cost mortgages to active duty and retired military personnel, and their families. 

The terms of loans are more affordable but require applicants to meet specific income and credit score requirements. From the experienced professionals at Supreme Lending Willmar, here’s what you need to know about VA loans.

What Is a VA Loan?

A VA loan enables veterans and their families to obtain financing for various types of home purchases as a reward and benefit for their service to the nation. VA loans are guaranteed by the VA, meaning lenders generally do not have to worry about the prospects of lenders defaulting on a particular loan. As a result, borrowers receive lower interest rates and can purchase with low or no money down.

Who Qualifies for a VA Loan?

VA loan eligibility depends on the length of your service in the military. Current military personnel qualify after serving for 90 consecutive days. For retired military, the standards are a little more complicated as they are based on when someone served and for how long. 

For example, veterans of World War II, the Korean War, the Vietnam War, and the Gulf War are eligible if they served for 90 total days during those conflicts. The requirement doubles for those who served during in-between times when the nation was at peace. The criterion changes for those who may have been discharged early for, say, medical reasons.

The VA added a new piece of eligibility criteria in the 1980s. Generally, personnel who served after 1980 can gain VA loan eligibility after serving a continuous period of 24 months. You can also qualify after serving six years in the Reserves or National Guard. Learn more about eligibility for VA loan benefits at the Veterans’ Administration site.

Why Seek a VA Home Loan?

If you are a military veteran, it makes sense to explore the option of a VA Home Loan. Generally speaking, you can purchase your own home using the VA Home Loan program to obtain a mortgage with a lower interest rate and a lower requirement for a down payment.

Other types of VA home loans programs include:

• Interest Rate Reduction Refinance Loan: This VA program allows institutions to help existing homeowners to find their way toward a lower interest to make their properties more affordable.
• Native American Direct Loan Program: This program is for Native American veterans to finance the purchase, construction, or improvement of homes on Federal Trust Land,
• Adapted Housing Grants: These loans help veterans who suffered a disability during their military service to purchase or build an adapted home or to rehab an existing home into something more suitable.

No matter your lending need, Supreme Lending DFW stands firm on our promise to provide superior service to all our customers and business partners. We do this by emphasizing a welcoming and supportive environment that empowers our colleagues to attain personal and professional success while guiding you to the best possible options. Call us or contact us online today.