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VA Loan Purpose Guidelines

What are the VA loan purpose guidelines?

There are several things you can use a VA home loan program for. One, of course, is to buy a home.

That home can be a single family dwelling, town home, condominium, or mobile home. You can also use veteran home loans to buy the house and improve it at the same time.

There are refinancing capabilities on a current dwelling as well. 

If you think you are ready, be sure to get a lender who is familiar with working with this mortgage option.

Below are listed the abiding principles of veteran home loans and how exactly you might benefit from them if you are an ex-serviceman.

The reason that these loans exist at all is because the US Government saw that ex-servicemen were not being well served by private financing and banks, and were having problems with purchasing their own homes once they left the service.

They therefore created the VA loans scheme to allow eligible servicemen and women to get home financing much more easily, even if they didn't have the normal level of down-payment that would have conventionally been required.

VA Loan Purpose Explained

When trying to set down VA Loan Guidelines the US Government are essentially underwriting the loans that ex-servicemen and women are receiving.

This couple sees an outline of a house dreaming that this will be a reality someday for them. It can be a reality for you too!

VA Loan Purpose

The advantages for all parties are clear:

  1. The Government is not actually lending the money, it is simply underwriting the scheme. So it doesn't have to spend out any money up front in order to both provide another advantage to people to serve in the armed forces (which constantly need new personnel) and also reward the service of those who have already served.
  2. The ex-serviceman and women benefit because they are now able to access finance that was previously unavailable to them. The reason for this is that because the US Government is underwriting the loans, that the financial institutions realize that a default is virtually impossible. Because if the serviceman falls into financial difficulties and is unable to pay their home loan back, then the US Government will step in to do it for them.

What this means if you are an eligible ex-serviceman or woman is that the US Government has basically set up a home loan program that works something akin to your Dad and how he helped with your first car loan!

Namely, that when you got your first car your Dad may well have stepped in at the bank and guaranteed your car payments.

As a young driver with a limited income you would have been a bad bet for the bank, but once your Dad guaranteed it, you were literally golden! The bank knew that they couldn't lose.

Check the VA loan purpose guidelines to make sure if you are eligible to receive the loans (you need to have served during specific dates), and if you are then these are the best first home loan security anyone can get.

These are some of the VA loan purposes that you can use for your home. If you have any other questions about use of a VA loan, please ask them here.

Other Things to Consider With Veteran Home Loans

Don't forget to maintain good credit. No matter what VA home loan program you look at your credit is important. I have prepared these pages with lots of information to help you.

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