VA loans are mortgage loans, guaranteed by the United States Department of Veteran affairs “to provide long term loans to active duty servicemembers, reservists, and veterans or their surviving spouses on condition they do not remarry.” VA loans came into existence in 1944 through the original Servicemen’s Readjustment Act, also known as GI Bill of Rights. This helped in realizing the dreams of many veterans to own a home with absolutely no down payment and no PMI.
VA loans are attractive and have many advantages. First, there is no required down payment which allows the purchaser to not have for years to apply a down payment. Second, there is no PMI which is typically required for those that purchase homes with less than 20% of the down payment. Around 25.5 million veterans are eligible for VA loans. Eligibility for VA loans is for “veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or minimum of 181 continuous days during peace time”.
Loans guaranteed by VA are issued by private lenders or mortgage companies. VA Loan Captain is one such veteran owned company founded in 2011 that assists veterans and servicemembers obtain VA home loans to veterans at competitive i interest rates. In addition, they strive to bring down the veteran unemployment rate with a pledge to employ mainly veterans, and through their Veterans Pay It Forward Program provide $200 to a partner veteran charity for every loan they close.
If you are an eligible veteran or servicemember with a dream of having a home of your own; or you would like to refinance your existing home to a lower rate, please contact us for more details.