Home Loans for Active Military and Veterans

posted 6/1/2015 in Mortgage

Home Loans for Active Military and Veterans

One of the most powerful benefits our active duty military and veterans earn is a VA home loan. These loans can be used to finance the purchase of a home or other home improvement projects like energy efficient appliances or updates.

Congress created this program in 1944 to help returning World War II soldiers rebuild their lives. Over time the program has helped millions of military families buy homes. The great advantage of a military VA loan is that it allows qualifying borrowers to buy a home with no down payment and less stringent credit requirements.

It’s important to note that The U.S. Department of Veterans Affairs (VA) doesn’t issue home loans directly to veterans and active duty military members. Instead, private lenders like banks and other financial institutions make the loans and the VA partially guarantees the loan so the lender is protected if the borrower is not able to pay. Lincoln Savings Bank has proudly offered loans through the military VA loan program for many years.

Because the VA backs the loan, lenders can offer mortgages to eligible homebuyers at competitive rates and lower costs than those buyers would otherwise get due to limited assets or below-average credit histories.

Although VA guaranteed loans are usually easier to obtain than conventional loans, like any other mortgage loan, you still have some basic qualifications to meet. You must have acceptable credit under the terms of the program, appropriate income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan.

In addition, not every person who has served in the military is eligible. In general, you may be eligible for a military VA loan if you served:
  • 90 consecutive days on active duty during wartime
  • 181 consecutive days on active duty during peacetime
  • 6 years in the National Guard or Reserves, or
  • You are the surviving spouse of a veteran who died in the line of duty or of a service-connected disability

Today’s VA guaranteed loans include several money saving benefits and are generally easier to qualify for than a conventional loan. Your mortgage lender will walk you through the process for obtaining a military VA loan and help you obtain the proper documentation.

Let Lincoln Savings Bank help you find your next home with confidence, knowing you are ready to buy when the right home appears. If you think a VA loan may be right for you, you can start the mortgage process online in just a few minutes at no cost to you by completing visit our mortgage launchpad.

If you prefer personal assistance rather than online help, you can contact us at one of our many Iowa locations and one of our mortgage experts will be happy to answer your questions.

Lincoln Savings Bank, Member FDIC, Equal Housing Lender
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