VA Loans

VA Home Loans: A Special Benefit for Veterans

The VA Home Loan program was established in 1944 under the Servicemen’s Readjustment Act, commonly known as the GI Bill, to help veterans, active-duty service members, and certain members of the National Guard and Reserves secure affordable home financing. The program provides 100% financing with no down payment, making homeownership more accessible to those who have served our country. VA loans are offered through private lenders, such as banks and mortgage companies, but are backed by the U.S. Department of Veterans Affairs (VA), which guarantees the loan and reduces the risk for lenders.

Because VA loans are government-backed, lenders often offer more favorable terms, including lower interest rates, no private mortgage insurance (PMI), and reduced closing costs. VA loans are available to eligible service members, veterans, and qualifying surviving spouses in all 50 states and U.S. territories.

Who Is Eligible for a VA Loan?

To qualify for a VA loan, applicants must meet certain service requirements, which vary depending on whether the applicant served during wartime, peacetime, or is an active-duty service member. Below are the eligibility guidelines:

Wartime/Conflict Veterans

  • World War II: Service from September 16, 1940, to July 25, 1947
  • Korean Conflict: Service from June 27, 1950, to January 31, 1955
  • Vietnam War: Service from August 5, 1964, to May 7, 1975, or February 28, 1961, to May 7, 1975, if service was in the Republic of Vietnam
  • Persian Gulf War: Service from August 2, 1990, to present (consult with VA for minimum active-duty requirements)
  • Afghanistan & Iraq Conflicts: Check with the VA for specific eligibility details

Peacetime Service

  • Minimum of 181 days of continuous active duty with an honorable discharge, or service of less than 181 days if discharged for a service-connected disability during the following periods:
    • July 26, 1947, to June 26, 1950
    • February 1, 1955, to August 4, 1964
    • May 8, 1975, to September 7, 1980 (enlisted), or October 16, 1981 (officer)
  • Post-1980 Enlisted Veterans and Post-1981 Officers: Must have completed 24 months of continuous active duty and been honorably discharged.

Reserves & National Guard Members

  • Certain U.S. Citizens who served in the armed forces of allied nations during World War II.
  • Surviving spouses of eligible veterans who died as a result of service-connected injuries, and have not remarried.
  • Spouses of military members who were listed as POW (Prisoner of War) or MIA (Missing in Action) for over 90 days.

Active Duty Service Members

  • Service members who have served 90 continuous days of active duty.

What Type of Property Can Be Purchased with a VA Loan?

VA loans can be used to finance the purchase or refinance of a primary residence, as long as it meets certain conditions. Eligible properties include:

  • Existing Single-Family Homes
  • Townhouses or Condominiums (must be part of a VA-approved project)
  • New Construction Homes
  • Manufactured Homes or Lots
  • Home Refinances and Certain Home Improvements (such as energy-efficient upgrades)

How to Apply for a VA Loan

To apply for a VA loan, you can work with any mortgage lender who participates in the VA loan program. In addition to meeting the application requirements of your lender, you will need to submit the following:

  1. Certificate of Eligibility (COE): Obtain this from the Veterans Administration by submitting VA Form 26-1880.
  2. Proof of Military Service: Submit this through a VA Eligibility Center.

Can You Get a VA Loan More Than Once?

Yes, it’s possible to obtain multiple VA loans over time. If you’ve previously used a VA loan and paid off the mortgage or sold the property, you can have your VA loan eligibility restored. You can also restore eligibility if you still own the property but have paid off the loan.

To restore eligibility, submit VA Form 26-1880 to the VA Eligibility Center, along with a paid-in-full statement from the previous lender or a HUD-1 settlement statement.

Benefits of a VA Loan

  1. 100% Financing & No Down Payment: One of the most attractive features of a VA loan is the ability to purchase a home with no down payment and avoid private mortgage insurance (PMI).
  2. No PMI Required: VA loans eliminate the need for costly PMI, which is typically required on conventional loans when a borrower has less than 20% equity.
  3. Competitive Interest Rates: VA loans offer lower interest rates compared to conventional loans, helping you save money over the life of the loan.
  4. No Prepayment Penalties: You can pay off the loan early without incurring any penalties, giving you the flexibility to pay off your mortgage faster.
  5. Easier Qualification: The qualification requirements for a VA loan are generally more flexible compared to conventional loans, making it easier for veterans and service members to qualify.
  6. Sellers May Pay Closing Costs: In many cases, the seller can contribute to some of the closing costs, reducing the financial burden on the borrower.
  7. Can Combine with Other Assistance Programs: VA loans can be combined with additional down payment assistance programs to further reduce closing costs.

Talk to a mortgage expert now!

Quick contact
©2025 – American Safe Lending