VA Guarantees Its 28 Millionth Home Loan in June 2023

June 2023 marked a significant milestone for the VA as it guaranteed its 28 millionth home loan. The VA home loan was first introduced under the Servicemen’s Readjustment Act of 1944, popularly known as "The G.I. Bill". Throughout its history, this program has played a pivotal role in assisting numerous Veterans and active-duty service members.

As of now, a little more than 21% of Veterans benefit from active VA-guaranteed home loans.

Eligibility Expansion of the VA Home Loan Program

In a significant move in 1992, the eligibility criteria for the VA home loan program was broadened to encompass Veterans and service members of the Reserve and National Guard. The only prerequisite for them was to have served honorably for a minimum duration of six years if they didn't already qualify under the prior active-duty provisions.

Key Benefits of the VA Home Loan Program for Veterans:

- Zero down payment requirement.

- Reduced closing expenses.

- Absence of Private Mortgage Insurance (PMI) necessity.

- No penalties on pre-payment.

- Assistance in cases of default.

- Reusability: The VA home loan guaranty can be used multiple times.

The core mission of the VA Loan Guaranty Service remains unwavering. It aims to enhance the chances for Veterans and service members to acquire, maintain, and modify their residences. This is done to acknowledge their invaluable service and dedication to our nation.

Criteria for VA-guaranteed Loans:

VA-guaranteed loans are designated for residences where Veterans, their spouses, or dependents (for those in active service) reside. Eligibility hinges on maintaining satisfactory credit, adequate income to fulfill monthly commitments, and a valid Certificate of Eligibility (COE).

The COE, as its title suggests, reassures lenders about a Veteran’s qualification for the VA home loan. Veterans can either request lenders to retrieve their COE or they can access it by logging in at va.gov.

For a deeper dive into the VA home loan program and its features, visit www.vahousingeducation.com.