These loans, although called VA loans (VA being short for the Veteran’s Administration) are not provided by the Veteran’s Administration. The federal government identifies the fundamental standards for the loans and then guarantees the loan amount to the loan provider in case the borrower defaults.
To be eligible to get a VA loan, you should fulfill the list below of requirements:
- Honorably released wartime veteran of WWII, Korean War, or Vietnam with at least 90 days of active duty.
- During peacetime, July 1974-September 1980, serve 181 days constant active service (may be less if released for a service-connected special need).
- For service dates after 1980, a total of 24 months of continuous active service or 90 days in the Persian Gulf or Iraq.
- Certain National Guard and Reserve soldiers may be eligible if they finished 6 years in an active National Guard system, and had weekend drills and active service training.
- Spouses of veterans may be eligible if the veteran’s death was brought on by a service linked injury or ailment.
- A U.S. resident who served in a military for a nation allied with the U.S.
Proof of service is required to obtain VA loans. To see what proof is needed, and to find responses to other VA loan questions, check out the VA website at www.va.gov.
Being eligible for a VA loan does not ensure that you will receive one. Your credit history and other elements are still evaluated, but generally, the guidelines are less strict than with competitive traditional loans. In addition, VA loans usually provide better rates than competitive traditional loans with little or no money down, and there are specific closing costs that purchasers are not permitted to pay with a VA loan.
Furthermore, VA loans generally provide much better rates than competitive conventional loans with little cash down, and there are particular closing expenses that buyers are not permitted to pay with a VA loan.