The VA Loan provides veterans with a federally guaranteed home loan which requires no down payment. This program was designed to provide housing and assistance for veterans and their families.
The Veterans Administration provides insurance to lenders in the case that you default on a loan. Because the mortgage is guaranteed, lenders will offer a lower interest rate and terms than a conventional home loan. VA home loans are available in all 50 states. A VA loan may also have reduced closing costs and no prepayment penalties.
Additionally there are services that may be offered to veterans in danger of defaulting on their loans. VA home loans are available to military personal that have either served 181 days during peacetime, 90 days during war, or a person who is a spouse of serviceman either killed or missing in action.
What is the VA Loan?
The Veteran Administration’s Loan originated in 1944 through the Servicemen’s Readjustment Act; also known as the GI Bill. It was signed into law by President Franklin D. Roosevelt and was designed to provide Veterans with a federally-guaranteed home loan with no down payment. VA loans are made by private lenders like banks, savings & loans, and mortgage companies to eligible Veterans for homes to live in. The lender is protected against loss if the loan defaults. Depending on the program option, the loan may or may not default.
Who is Eligible for a VA Loan?
Wartime/Conflict Veterans
- Veterans who were NOT Dishonorably Discharged, and served at least 90 days
- World War II – September 16, 1940 to July 25, 1947
- Korean Conflict – June 27, 1950 to January 31, 1955
- Vietnam Era – August 5, 1964 to May 7, 1975
- Persian Gulf War – Check with the Veterans Administration Office
- Afghanistan & Iraq – Check with the Veterans Administration Office
- Veterans Administration website www.va.gov
Peacetime Service
At least 181 days of continuous active duty with no dishonorable discharge. If you were discharged earlier due to a service-related disability you should contact your Regional VA Office for eligibility verification.
- July 26, 1947 to June 26, 1950
- February 1, 1955 to August 4, 1964, or May 8, 1975 to September 7, 1980 (Enlisted), or to October 16, 1981 (Officer)
- Enlisted Veterans whose service began after September 7, 1980, or officers who service began after October 16, 1981, must have completed 24-months of continuous active duty and been honorably discharged
Reserves and National Guard
- Certain U.S. Citizens who served in the Armed Forces of a government allied with the United States during World War II.
- Surviving spouse of an eligible Veteran who died resulting from service, and has not remarried.
- The spouse of an Armed Forces member who served Active Duty, and was listed as a POW or MIA for more than 90-days.
What kind of home can I buy with a VA Loan?
A VA home loan must be used to finance your primary residence within the United States and its territories. You have many choices for the type of home you purchase:
- Existing Single-Family Home
- Townhouse or Condominium in a VA-Approved Project
- New Construction Residence
- Manufactured Home
- Home Refinances and Certain Types of Home Improvements
What documents do I need to apply for the VA Loan?
You can apply for a VA Loan by filling out the application below. In addition to the application requirements, you will need the following at application time:
- Certificate of Eligibility from the Veterans Administration by submitting a completed VA Form 26-1880.
- Proof of Military Service: DD214
- 2 forms of ID (one must have photo)
- Income Documents
- 30 days most recent pay stubs
- award letter for social security or disability
- if you are self employed, call me to discuss the best documentation for your situation
(918)316-7237
- 2 yrs federal income tax returns, form 1040
- 2yrs w2s and/or 10-99s
