| VA PURCHASE LOANS VA Home Loans Benefit Qualified Veterans VA Home Loan guarantees have been a part of the original GI Bill since 1944. The VA has guaranteed more than 18 million home loans worth over $911 billion. In 2008, 180,000 veterans, active duty servicemembers, and survivors of veterans received VA home loans valued at about $36 billion. More than 90 percent of those VA home loans did not require a down payment. The VA Home Loan program allows veterans whose income and credit qualify them to purchase a home for their primary residence, with no money down, as long as the sales price falls within the appraised value of the home. Additionally, closing costs may be paid by the seller, which can be negotiated when the sale price of the home is set. As an added bonus, VA Home Loans are assumable, as long the person assuming the loan is qualified. Although the VA does not have a maximum for VA Home Loans, lenders will generally limit loans with no down payment to $417,000 ($625,500 in Hawaii, Guam, Alaska and U.S. Virgin Islands). Some of the requirement for a VA Home Loan include qualifying income and credit and occupying the home as a primary residence. Among the advantages, the veteran does not have to be a first time home buyer, and he/she may reuse his/her benefit. Remember that the lender, not the VA, sets the interest rate and points, so rates may vary from lender to lender. It is also best to shop around for the best rates. |