The VA Loan came about as part of the 1944 original Servicemen’s Readjustment Act most people refer to as the GI Bill of Rights. President Franklin D. Roosevelt provided veterans with a federally guaranteed home with no down payment. This feature was designed to promote housing and assistance for veterans and their families, at a time when we needed more veterans to realize the dream of home ownership. The GI Bill contributed more than any other program in history to the welfare of veterans and their families, and to the growth of the nation’s economy.
Although it might seem like a complicated formula, the VA will guarantee a maximum of 25 percent of a home loan amount up to $104,250, which limits the maximum loan amount to $417,000 (except in some very high cost areas where they go over $700K). Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. All veterans must qualify for the loans, they are not automatically eligible for the program.
Today, there are over 30 million soldiers and service personnel eligible for VA financing. This loan 100% loan is attractive and has many advantages. Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime. If you served in Vietnam, or the National Guard or Reservist, and want to find out if you qualify please click here.
If you are purchasing between 1/1/2009 and 04/30/2010 you might qualify for an $8000 tax credit! For details click here! (For First Time Homebuyers!)