MORTGAGE BLOGBlog posted On July 25, 2024
The VA home loan was created through the G.I. Bill, also known as the Servicemen’s Readjustment Act of 1944. Signed into law by President Franklin D. Roosevelt on June 22nd, this legislation ensured an enduring legacy that continues to provide Veterans with vital resources, fostering a brighter future for generations to come. The VA Loan played a critical role in that development.
Where It All Began
In 1944, the U.S. had just endured the previous war-torn decades and witnessed the great bravery and sacrifices made by the country’s service members. The government realized the importance of establishing credit and building a strong financial future for Veterans. They aimed to level the playing field for those who served our country during World War II, and in many ways, it reshaped the course of America. Rather than providing Veterans with cash to help purchase a home, they were offered a loan guaranty, which is a financial pledge from the government to repay a portion of the loan should the borrower default.
Benefits Expansion
Following the ensuing decades, the VA Loan received expansion to its benefits. In the post-World War II era, the program’s eligibility criteria expanded to Korean and Vietnam War Veterans. In the 70s, it was further expanded to include National Guard and Reserve members and certain categories of military spouses.
Each decade modernized the VA Loan a little more, evolving to meet the changing needs of Veterans. These modernizations included loan limits, increased term flexibility, and a more streamlined application and approval process. Recent years have seen consistent growth in the program, with the VA celebrating its 28 millionth loan in June of 2023, according to Hawaii VA Loans. A recent analysis from Veterans United Home Loans revealed that the VA loan program has contributed $3.9 trillion to the U.S. economy, highlighting the program’s positive impact on the country for eight decades.
VA Loan Benefits
Let’s take a look at what this program can offer Veterans today. These benefits include:
VA Loan Eligibility
VA Loans are available for active-duty military, Veterans, reservists, National Guard, and surviving military spouses. To apply, you must meet the following requirements:
Are you a Veteran and looking to buy a home? With requirements waived for down payments and mortgage insurance, we can help get you started with a VA Loan today. Reach out to learn more!
Source: National Association of REALTORS®, American Veterans, Hawaii VA Loans, Veterans United Home Loans
