VA Home Loans
The Veteran Administration (VA) Loan was introduced in 1944 under the Servicemen’s Readjustment Act, better known as the GI Bill. Signed into law by President Franklin D. Roosevelt, the program was created to help veterans achieve homeownership by offering a federally guaranteed loan that requires no down payment. These loans are provided by private lenders, such as banks and mortgage companies, but are backed by the U.S. Department of Veterans Affairs to protect against losses in the event of default.
Because VA loans are government-guaranteed, lenders are able to offer more favorable terms than conventional loans. Eligible veterans can take advantage of lower interest rates, reduced closing costs, and flexible qualification requirements—all without the burden of mortgage insurance or prepayment penalties. VA loans are available nationwide and remain one of the most valuable benefits for those who have served.
Who is Eligible for a VA Loan?
VA loans are available to a wide range of service members, veterans, and even certain spouses. Eligibility depends on when and how you served, as well as your discharge status.
Wartime/Conflict Veterans – Veterans who served at least 90 days of active duty (without a dishonorable discharge) during major conflicts, including World War II, the Korean War, the Vietnam War, the Persian Gulf War, and more recent conflicts in Afghanistan and Iraq. In some cases, those discharged earlier due to a service-related disability may also qualify.
Peacetime Veterans – Those who served at least 181 days of continuous active duty outside of wartime periods, with honorable discharge. For service beginning after 1980 (enlisted) or 1981 (officers), a minimum of 24 months of continuous service is required.
Reserves and National Guard – Certain members of the Reserves or National Guard may qualify, as well as U.S. citizens who served with allied forces during WWII.
Surviving Spouses – The un-remarried spouse of a veteran who died from service-related causes, or the spouse of a service member who was a POW or MIA for more than 90 days.
Active Duty Members – Current service members who have completed at least 90 continuous days of active duty.
For the most current eligibility requirements, it’s best to check directly with the U.S. Department of Veterans Affairs.
What Type of Home Can I Buy with a VA Loan?
VA loans are designed to help eligible service members and veterans finance a primary residence within the United States or its territories. Qualified properties include:
Existing single-family homes
Townhouses or condos in VA-approved projects
Newly built homes
Manufactured homes and lots
Home refinances and certain approved home improvements
How Do I Apply for a VA Loan?
You can apply through any mortgage lender that participates in the VA loan program. In addition to your lender’s requirements, you’ll need:
A Certificate of Eligibility (COE) from the VA (Form 26-1880)
Proof of Military Service, which can be obtained through a VA Eligibility Center
Can I Get More Than One VA Loan?
Yes. If you’ve already used a VA loan but sold the property and paid it off, you can restore your eligibility. Even if you still own the home but the loan is fully paid, you may be able to restore your eligibility once. To do this, you’ll need to submit VA Form 26-1880 along with proof that the loan has been satisfied (such as a HUD-1 settlement statement or lender’s payoff letter).
Benefits of a VA Loan
No down payment required (100% financing)
No Private Mortgage Insurance (PMI)
No prepayment penalties
Competitive interest rates
Easier qualification than conventional loans
Sellers can cover part of your closing costs
Can be combined with down payment assistance to lower costs further