VA LOANS

The VA Mortgage program is made available to qualified and eligible military veterans through private lenders such as banks, mortgage brokers and direct lenders. VA loans bring certain guarantees to a portion of the mortgage process allowing the lender to be protected against losses if the borrower defaults. This allows the lender to provide benefits such as "no down payment” toward the financing of a home purchase and no monthly mortgage insurance, and lower interest rate than a conventional loan.  A “Funding Fee”, which is determined by how many times you’ve used your VA loan options, is rolled into the loan and can be paid ahead of time if you choose. 

Active Duty: Active Duty personnel are eligible after having serviced on continuous active status for at least 90 days.

Prior Service: Prior Service personnel are eligible only depending on whether service occurred during Wartime or Peacetime.

Wartime Service: War service personnel must have served at least 90 days on active duty and been discharged or released for any reason other than dishonorable conditions. If service was less than 90 days they may be eligible if discharged because of a service connected disability.

Peacetime Service: Peacetime Service personnel must have served at least 181 days of continuous active duty and been discharged or released for any reason other than dishonorable conditions. If service was less than 181 days, they may be eligible if discharged because of a service connected disability.

Two Year Requirement Period: If the Veteran’s period of service was between September 7, 1980 (or October 16, 1981 for officers) and August 1, 1990, the Veteran must have completed 24 months of continuous active duty or the full period (at least 181 days) for which the Veteran was called or ordered to active duty; and he must have been discharged or released for any reason other than dishonorable conditions.

Select Reserve If they are not otherwise eligible, members of the Selected Reserve are eligible if they have completed at least 6 years in the Reserves or National Guard, or been discharged because of a service connected disability, and one of the following:

• Have been an honorable discharge
• Have been placed on the retired list
• Have been transferred to an element of the Ready Reserve
• Continue to serve in the Selected Reserve

Even if you are eligible for a VA loan, it may not be your best option. Contact a lender to discuss all options so you can make the best choice for you.