VA Home Loan Program

The VA Home Loan Program

The U.S. Department of Veterans Affairs (VA) has a home loan guaranty program for eligible veterans. The loans are made by a lender, such as a mortgage company, savings, and loan or bank. The VA guarantees part of the total loan amount. The result is that purchasers are able to obtain a competitive interest rate without having to make a downpayment. VA Home Loans can be used for the purchase or construction of single-family homes, townhouses, or condominiums.
The Veterans Benefits Improvement Act of 2004 (S2486) brought about significant and positive changes in the VA Home Loan Program.

Until the new law was enacted, the statute capped the limit on the maximum loan guaranty at $60,000. With the new law, the maximum guaranty now adjusts automatically each year. Now for example, veterans' purchasing power for a single-family residence is increased from $240,000 to $359,650. More importantly, the guaranty amount will now keep in stride with market considerations.

The local VA office can provide more details on guaranty and entitlement amounts.