Since this week was Veterans Day, I thought it would be a good time to remind people that veterans have the ability to qualify for a VA loan for homes. It is one of the few loans left that allows you to buy a home with zero down. This loan is available to those on active duty, veterans that have served on active duty and surviving spouses. Those in reserve and national guard units that have served at least 6 years may also be eligible. You will need a certificate of eligibility to determine your loan benefits.
VA loans are also assumable with qualifying, so that helps those that are selling a home with a VA loan on it. However, if the veteran wants to buy another home with a VA loan, you will need your original loan paid off or you will not have the full benefit for the next home.
In October 2008, there was a new law signed by the President called the Veterans Benefits Improvement Act of 2008. This allows veterans with subprime loans to refinance those loans into VA loans. Veterans that want to refinance their subprime or conventional loan into a VA loan will now be allowed to do so up to 100% of the appraised value. These loans were previously capped at 90% of the value. Previously, these loans were capped at $144,000, now depending on where the home is located, the maximum loan is $729,750.
Since 1944, when home loan guarantees were offered with the original GI bill, the VA has guaranteed more than 18 million worth over $911 billion.
I also want to thank our veterans for their service to our country. Thank you very much!
