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What is a VA Loan?

The VA Home Loan Program was established in 1944 as part of the Servicemen’s Readjustment Act, commonly known as the GI Bill. Signed into law by President Franklin D. Roosevelt, the program was created to help eligible Veterans secure homeownership through federally-backed loans requiring no down payment.

VA loans are issued by private lenders such as banks, credit unions, and mortgage companies, with the U.S. Department of Veterans Affairs guaranteeing a portion of the loan. This guarantee provides lenders with protection in case of default, making it easier for Veterans to obtain favorable loan terms. The risk of default depends on various factors, including the specific loan program and individual borrower circumstances.

This content is for educational purposes only and does not represent official VA policy. For authoritative information, please visit the U.S. Department of Veterans Affairs.

Who is Eligible for VA Loans?

Veteran Eligibility Guidelines (For Educational Use Only)

This information is provided for educational purposes only and does not constitute official guidance or legal advice. All details are based on publicly available information from the U.S. Department of Veterans Affairs. For official eligibility verification and the most up-to-date information, please visit the Veterans Administration website or contact your Regional VA Office. We do not claim copyright over this content, and all rights remain with the original source.

Wartime/Conflict Veterans

Veterans who served at least 90 days of active duty and were not dishonorably discharged may qualify for benefits.

  • World War II: Sept 16, 1940 – July 25, 1947

  • Korean Conflict: June 27, 1950 – Jan 31, 1955

  • Vietnam Era: Aug 5, 1964 – May 7, 1975

  • Persian Gulf War, Afghanistan & Iraq: Eligibility details should be confirmed with the VA Office.

Peacetime Service

Veterans must have 181 days of continuous active duty without a dishonorable discharge. Those discharged earlier due to a service-related disability should verify eligibility with their Regional VA Office.

  • July 26, 1947 – June 26, 1950

  • Feb 1, 1955 – Aug 4, 1964

  • May 8, 1975 – Sept 7, 1980 (Enlisted) or Oct 16, 1981 (Officer)

  • After Sept 7, 1980 (Enlisted) / Oct 16, 1981 (Officer): Requires 24 months of continuous active duty with an honorable discharge.

Reserves & National Guard

  • WWII Allied Forces: U.S. Citizens who served with an Allied Government.

  • Surviving Spouse: If a Veteran died from service-related causes and the spouse has not remarried.

  • POW/MIA Spouse: If an Active Duty member was POW or MIA for 90+ days.

For official eligibility confirmation, contact the VA at www.va.gov.

What type of home can I buy with a VA loan?

A VA home loan must be used to finance your personal residence within the United States and its territories. You have 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 or Lot

  • Home Refinances and Certain Types of Home Improvements

What are the benefits of a VA loan?

  • 100% Financing & No Down Payment Loans

  • No Private Mortgage (PMI)

  • No Penalties for Prepaying the Loan

  • Competitive Interest Rates

  • Qualification is Easier than a Conventional Loan

  • Sellers Pay Some of the Closing Costs

  • Can be combined with additional down payment assistance to reduce closing costs

How do I apply for a VA-guaranteed loan?

You can apply for a VA Loan with any mortgage lender that participates in the program. In addition to the application requirements from your lender, you will need the following at application time:

If I already obtained one VA loan, can I get another one?

Yes, your eligibility is reusable depending on the circumstance. If you have paid off your prior VA Loan and disposed of the property, you can have your eligibility restored. Also, on a 1-time basis, you may have your eligibility restored if your prior VA Loan has been paid, off but you still own the property. Either way, the Veteran must send the Veterans Administration a completed VA Form 16-1880 to the VA Eligibility Center. To prevent delays in processing, it's advisable to include evidence that the prior loan has been fully paid, and if applicable, the property was disposed of. A paid-in-full statement from the former lender or a copy of the HUD-1 settlement statement must be submitted.

What are the disadvantages of a VA loan?

  • VA Loans made prior to March 1, 1988 can be assumed with no qualifying of the new buyer. If the buyer defaults the property the Veteran homeowner may be liable for the funds.

  • Some sellers are hesitant to work with someone obtaining a VA Loan because it takes longer than a conventional loan to process.

  • Sellers are often asked to pay a portion of closing costs and therefore less likely to negotiate the sales price of the home.

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