First and foremost, a VA loan is a benefit that America’s veterans have earned as part of their military service. This benefit was made available in 1944 through the original Servicemen’s Readjustment Act also known as the GI Bill of Rights. This benefit provides long-term financing to help veterans and their surviving spouse to realize the American Dream with no down payment. The GI Bill has been the largest contributor to the welfare of veterans and their families since its inception.
These loans are government backed which allows lenders to be more flexible in qualifying. A VA loan is one of the only loan programs that provide 100% financing to a borrower in today’s market. It does not require private mortgage insurance. There are limitations on the veterans costs. VA loans are currently offered as both fixed rate & adjustable rate mortgages.