VA Mortgages and How They Can Help
The US Department of Veterans Affairs (VA) home loan program dates back to World War II, when passage of the Servicemen’s Readjustment Act (better known as the G.I. Bill) granted a benefits package to eligible veterans. Instead of lending money itself, the VA guarantees mortgages, reimbursing lenders in the event of default. This reduction in risk enables lenders to increase availability and decrease costs for VA home loans.
The VA program boasts a good range of home loans that can be used, for instance:
- Construct a single-family house
- Purchase a single-family house, VA-approved condominium, or co-op unit
- Repair or upgrade a primary residence
- Refinance an existing mortgage
- Improve energy efficiency, as with a solar heating or cooling system
VA home loans continue to be available to eligible veterans (and in some cases their families), and as no mortgage insurance is necessary, they’re especially good for those who will borrow more than 80% of a home’s price (or appraised value). If you’ve already decided to take out a VA home loan, the VA Fast Track will get you started on buying, renovating, or refinancing your home, and you’ll be able to look over VA mortgage quotes from competing lenders here.