VA loans have been offered since World War II for returning military and their family. Now, more than 70 years later, 22 million VA loans have been approved. This is one of the ways we show our gratitude to returning warriors and National Home Finance is proud to participate.

The terms for VA loans are set by the U.S. Department of Veterans Affairs, but they do not directly lend the money for the purchase of the home. Private lenders will make the loans as in a conventional loan; then the VA will guarantee the deal, reducing the risk for the lender.

Benefits of VA loans to veterans

For those who qualify, VA loans are likely preferable to other available options. With VA loans:
No down payment is required. For those whose only hurdle is coming up with a large sum to bring to the signing, they no longer are prevented from being homeowners.
No mortgage insurance is needed. Because the loan is guaranteed by the government, no further insurance is needed. Without this monthly insurance premium as part of the mortgage payment, the total amount paid becomes much more affordable.
No specific credit score is mandated for approval. While the lender may reject certain applicants for very low scores, the VA does not set a specific score in their terms, allowing for more flexibility.
You receive assistance if you fall behind in your payments. There are Veterans Affairs staff who will reach out to your lender on your behalf if you fall behind. The VA is devoted to helping you stay in your home and making your payments and will negotiate to make sure you are treated fairly.

Qualifying for a VA loan

VA loans are only for those who have served the nation in the United States military and those who lost a spouse during active service. Not all who served in the armed forces qualify, though. Those who spent time overseas during wartime will almost always be approved. If you served during peacetime, 181 days of service are required. It can be harder for those in the reserve forces or the National Guard to qualify, but if they serve for six years or had their unit activated, they can also be approved.

Certificate of eligibility

In order for a veteran to complete a VA loan, they will have to secure a certificate of eligibility from the Department of Veterans Affairs. If you do not yet have one, don’t worry. We can help you get this certificate as we go through the pre-approval process. Please contact National Home Finance if you are a veteran and want to buy a home with a VA loan.

Veterans Administration (VA) loans

This loan program was established by the Department of Veterans Affairs (VA). VA loans are only available to those who have served (veterans) or currently serve in the United States military for the purchase of a primary residence. With a VA Loan, you could get a new home loan or refinance up to 100% of your existing home with nothing down, as the minimum down payment is “0”.
To qualify for a VA loan, you need a “certificate of eligibility” which details your military service. The VA does not make the loan directly to the borrower, but they insure or guarantee the loan. They also specify who qualifies and they dictate what terms can be applied. There are many VA-approved lenders and your mortgage broker can help you navigate the available options to get the best loan rates.

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