For most Americans, buying a home requires a significant down payment (up to 20% of the purchase price), putting homeownership out of reach. However, for active service members, veterans, and eligible surviving spouses, it’s possible to purchase a home with little or no money down through the VA loan program.
In today’s competitive housing market, military members enlist the VA for assistance with the mortgage loan process. While the VA does offer a variety of mortgage products nationwide, it’s important to understand the requirements.
What is a VA Loan?
Designed exclusively for the military, the VA loan is a mortgage loan established by the U.S. Department of Veterans Affairs (VA). The program assists active service members, veterans, and surviving spouses in achieving homeownership without a down payment or excellent credit. These loans are issued by private lenders and partially guaranteed by the VA, allowing zero financing and low-interest rates.
According to data from the VA, VA loans were up 16.5 percent in 2021 from 2020, with a total of 1.4 million loans funded last year totaling more than $375 billion. Since the program’s inception in 1944, the VA has backed more than 25 million home loans.
Am I Eligible for a VA Loan?
Active members serving in the Army, Navy, Air Force, Marines, Coast Guard, Space Force, National Oceanic Atmospheric Administration (NOAA), and Public Health Service (USPHS) are eligible for a VA loan.
However, you may qualify for a VA loan if you meet one or more of the following eligibility requirements:
- You must be the loan borrower or co-borrower
- You must have an Honorable discharge status.
- You served 90 consecutive days of active service during wartime.
- You served 181 days of active service during peacetime or 24 continuous months.
- You have six years of service in the National Guard or Reserves.
- You are the surviving spouse of a veteran who passed serving or from a service-connected disability and have not remarried.
- You must not owe more than $2,000 due to a federal tax lien or be delinquent in making child support payments.
Benefits of VA Loans
Compared to other mortgages, VA loans offer generous terms and countless benefits for those who qualify, including:
- No or Minimal Down Payment
- No Private Mortgage Insurance (PMI)
- Lowest Interest Rates
- Lenient Credit Standards
- Multiple Use of Benefit
To learn more about these and other related benefits, read our The Benefits of VA Loans blog.
Partner with Pacor Mortgage
Getting a VA Loan is easy when you partner with Pacor Mortgage! Since 1986, our expert real estate team has helped aspiring homeowners like you navigate the challenging and constantly changing real estate market. We would be honored to help get you into the home of your dreams. Visit our website to learn more about our Veterans Affairs lending options, or call us at 773-881-7744 to schedule an appointment.
2021 Pacor Mortgage Corp. Pacor Mortgage Corp is located at 14930 Cicero Ave, Oak Forest, IL 60452, Phone 773-881-7744 (Unique Identifier #120945). For Licensing information, go to: www.nmlsconsumeraccess.org. Pacor Mortgage Corp is an equal housing lender and is licensed by the Secretary of State under the Illinois Residential Mortgage Lending Act and is assigned Illinois Residential Mortgage License MB.0000892. Pacor Mortgage Corp branches operate with the following licenses and is assigned Illinois Residential Mortgage License MB.0000892-001, with a Wisconsin License # 260345BA, Palos Heights NMLS 261297 and is assigned Illinois Residential Mortgage License MB.0000892-008, Colorado, Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, California license # 41DBO-67516, Florida MLD1075, Indiana DFI 13177, Maryland 23528, Michigan FL0828, Michigan SR1130, Minnesota MN-MO-120945, North Carolina L-184546, Ohio RM.804151.000, Pennsylvania 43855, South Carolina, MLS – 120945, Wisconsin 120945BA, Kalamazoo, MI NMLS 120945 also DBA Lake Pacor Home Mortgage. This is not an offer for an extension of credit, a rate lock or a commitment to lend. All loans must satisfy company underwriting guidelines and any investor overlays. Any of the advertised products may be discontinued at any time. Information and pricing are subject to change at any time and without notice. Loans are being committed and closed at expressed rates although these rates change and may not be available at time of your lock in, commitment and / or closing. Pacor Mortgage Corp is not affiliated with your current lender, nor is it an agency or extension of the Federal Government, Fannie Mae, Freddie Mac or HUD.