Who Qualifies for the VA Home Loan?
The Veteran: The Obvious
The Servicemen's Readjustment Act of 1944, or the "G.I. Bill," was passed by Congress and signed into law by the president toward the close of World War II. This law offered a number of advantages for service members to assist them in adjusting to civilian life as well as financial aid to purchase a farm, pay for college, or launch a business. The brand-new VA home financing program is also there to assist with home purchases. More than 2 million World War II veterans received benefits from this well-liked program.
However, the program was only open to World War II veterans; it was not open to peacetime veterans.
As long as they served for at least 90 days during the war, a new rule that went into effect in 1952 gave Korean War veterans the same privileges.
The law was later modified once more in 1966 to include those who served in the military both during peacetime and during times of war. It now also covers those who served during and after the Vietnam War and the Gulf War, as well as all veterans who retired with an honorable discharge after at least 90 days of active duty.
Active Service
Even though the VA home loan benefit is now available to active duty individuals as well as qualified veterans, the original G.I. Bill was created with this purpose. One need not be a veteran to be eligible for a VA home loan if they are serving on active duty for more than 180 days in a row.
Those who are already serving should be aware that transfers are possible upon reassignment and that if they move from one base to another, they cannot take their VA benefits with them if they used their benefit to purchase a home with no down payment.
When acquiring a home using a VA loan, you must either sell the property or rent it out when you move. If your buyers obtained their own financing and you sell the house, you may be able to recoup your VA home loan entitlement. You cannot use a VA home loan until the initial VA loan has been paid off in some way if you didn't sell the house and instead rented it out. This is because your VA home loan benefit is tied to the original home.
A zero down VA loan might not be your best option if your position makes it likely that you will be transferred more than once during the following few years. Selling a home includes closing charges.
National Guard and Reserves of the Armed Forces
The VA home loan benefit may also apply to anyone who are now serving or have previously served in the National Guard or Reserves. In order to qualify, the borrower must:
completed six years of service in an active unit, completed at least 90 days of active service under Title 10 or Title 32, or were honorably dismissed from the Guard, Reserves, or active duty.
Although there are more than 500,000 active duty reservists and guard members at any given time, very few of them use the home loan benefit, and the majority are unaware they are eligible for the VA mortgage program with no down payment.
Spouse
While a spouse may take advantage of the VA benefits granted to that spouse, VA home loan benefits may only be transferred to a spouse in certain circumstances and after the death of the eligible veteran.
If the qualifying VA borrower passed away from a service-related illness, was listed as missing in action, or was taken prisoner of war, the surviving spouse may be eligible for the VA home loan benefit. The VA home loan benefit can transfer as long as the surviving spouse doesn't get married again while under certain conditions.
The United States Coast Guard, Air Force, and Even More Others cadets may also be eligible for the VA home loan benefit. The VA home loan benefit may also be available to midshipmen working for the Naval Academy and the National Oceanic and Atmospheric Administration (NOAA).
Still More
Those who are cadets in the US Military, Coast Guard, or Air Force may also be eligible for the VA home loan benefit. The VA home loan benefit may also be available to midshipmen working for the Naval Academy and the National Oceanic and Atmospheric Administration (NOAA).
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