The Veteran’s Administration guarantees mortgage loans for certain individuals as a benefit for having served in the United States Military. The VA is not the lender, but guarantees mortgage loans originated by a traditional mortgage lender. You may be eligible for a VA mortgage loan if you are a veteran, serving on active duty, a member of the National Guard or Reserves, or the surviving spouse of a veteran.
There are certain requirements that you have to meet to be eligible; here are the basics qualifications for a VA Mortgage loan. All honorably discharged veterans of any war (World War II, Korea, Vietnam, and the Gulf Wars) are eligible as long as you served at least 90 days of active duty. Peacetime veterans that served from July of 1947 through September of 1980 need to have completed 181 days of continuous active duty. If you were discharged prior to 181 days due to a service related disability you are still eligible for a VA mortgage loan. If you served after September of 1980, you must have 24 months of active duty or 181 days with a service related disability. Members of the National Guard need at least six years of service to qualify.
Why should you consider jumping through the additional hoops necessary to secure a VA mortgage? Mortgages backed by the Veterans Administration are a good deal, especially if you are purchasing your home with no money down. Expect your closing costs to be lower meaning you’ll have more cash in your pocket after closing. You can learn more about your mortgage options, including costly mistakes to avoid with our free mortgage video tutorial