Tags: History of VA Loans
Veterans Home Loans – The History of Veterans Loans
The idea of providing financial assistance for veterans who wish to become homeowners began in 1944 when the original Servicemen’s Readjustment Act was passed. This was a government bill that granted many financial benefits to veterans who passed the eligibility requirements. One of the parts of this bill that stood out as being important was the VA loan guarantee program. This law allows the VA to insure or guarantee any home loans that are granted to veterans. VA Home Loans have been an idea that has stayed consistent in US history for over 60 years since then.
The Servicemen’s Readjustment Act with its VA loan guarantee program was updated in 1970 with the passing of the Veterans Housing Act. This extended the terms of veterans home loans to include guarantees on mobile homes. It also removed any termination dates for veterans who wanted to apply for housing loans. In 1978, the Veterans Housing Benefits Improvement Act increased these benefits further, expanding the terms under which it was possible to apply for veterans loans. However, up until 1992 the guarantee program was limited in that it was only available to veterans who had served as active duty members during periods specified by the requirements.
When the Veterans Home Loan Program Amendments passed in 1992, this restriction changed. The program became eligible, as it is today, for service members who worked under the National Guard or Army Reserve. Those who serve for a minimum of six years under these government programs are now also eligible for veteran home loans. However, they may have to pay a higher funding fee than other active service members. Although many people think these loans involve direct lending by the government, the acts that have been passed simply allow the VA to guarantee loans made through private mortgage lenders.
To start going through the process of applying for veterans home loans, it’s necessary for veterans to find their own private lenders, after which time the VA then guarantees the lender should the buyer default. This leads to many benefits for the borrower, who doesn’t need to pay a down payment, and receives lower rates overall due to the VA guarantee. These rules continue to evolve. The Service member’s Civil Relief Act is one of the more recent amendments to veteran’s loans, protecting service members against any sudden rise in interest rates.
VA Loan Captain, Inc. is a service disabled veteran owned small business assisting veterans and servicemembers obtain a VA Loan at a competitive interest rate with best in class service.
Through our veterans guarantee program $200 is donated for every loan closed to a partner veteran focused charity.
For more information please visit www.valoancaptain.com