A Primer on VA Loans: What You Should Know

US dollarsDeciding to transition from renting to owning a house can be somewhat stressful. Given the immense financial responsibility attached to this decision, it is only understandable that many families put it on hold for way longer than necessary.

But if there is a legitimate need for this transition to be made, it is only fitting that you make the jump. Fortunately, there are ways for you to temper your financial anxiety relative to your plan of finally owning a house.

Home financing programs exist to help you make your aspirations come true. One such program is called VA loans.

What are VA loans?

A VA loan is a mortgage loan program enacted by the United States Department of Veteran Affairs (VA) whose goal is to assist veterans and their kin in securing financing for their home purchase.

While the VA establishes and oversees the rules and stipulations that govern VA loans, these mortgages originate from VA loan companies such as Primary Residential Mortgage, Inc.

Who are eligible?

VA loans do not require down payment. Also, they do not need to be covered by mortgage insurance. These are just two of the reasons why these loans are quite sought-after. Unfortunately, not everyone can have this home financing program.

VA loans can only be for active and retired members of the country’s Armed Forces, or, in cases of deceased military members who died while on duty, their spouses are extended with VA loan eligibility. Members of the National Guard and reservists can also apply for this program upon their sixth year of enlistment.

Members of the armed forces discharged due to service-related injuries during these service categories are also eligible:

  • World War II
  • Vietnam Era
  • Korean Conflict
  • Persian Gulf War

The VA loan is the Department of Veteran Affair’s way of safeguarding the interests of the country’s men and women in uniform by way of ensuring access to a fair home financing program. Whether you are a veteran or on active duty, this home loan is something you must definitely consider.

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