What Is a VA Loan?
In 1944 the VA home loan guaranty program was created to help out our veterans returning from the WW2. For their gratitude and sacrafice the US government felt compelled to offer a program that allowed service men and women easy access to buying a home.
There is a simple rational behind the VA loan program
The VA Loan program has made mortgage credit available to Vets where loans otherwise would not be extended.
Military personnel sacrificed gainful employment in order to protect the USA year after year, therefore, as appreciation for that service a special loan program was created.
VA Loans and Establishing Credit
Credit and Returning Vets - Keep in mind, establishing credit was a prime concern in developing a program that aided veterans "re-adjust" to civilian life. Supporters of the original VA legislation, back in 1944, overwhelmingly felt the biggest roadblock returning veterans could possibly face was establishing credit.
Establishing credit for Veterans - During WWII, buying homes, starting a business or farm was a missed opportunity for veterans. While civilians were going to college and establishing careers, a war was raging - military service was many times the priority replacing a more civilian /domestic lifestyle .
Fed Steps in To Help Vets The Federal Government realized that the lack of financial ability of returning Vets could have a devastating impact on the US both socially and economically and needed to step up and help all Military personnel for their efforts and sacrifice.
Thus, the VA loan program enabled veterans to compete with non-veterans and enjoy a relatively equal standard of living, once they returned home.
Servicemens Readjustment Act of 1944, public law 78-346, - It's ironic that originally the original Servicemens Readjustment Act of 1944, public law 78-346, was originally intended to offer cash bonuses to veterans. However, the alternative, the VA loan Guaranty Program was born out of the idea that enabling mortgage credit would be far more beneficial to the veteran and overall, less expensive to the US Govt.
Refinance your VA loan - VA loan programs don't just help first time buyers. There are programs to help veterans who already have purchased homes with a VA loan but would like to take advantage of a lower interest rate, read - VA Streamline Refinance Loan, and find out how you can save tens of thousands of dollars on your mortgage
What are the rules for VA loans and how do you qualify? please visit:
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