- The VA loan program insures mortgage loans made to veterans by private-sector banks, giving the banks added incentive to lend to veterans. Since the creation of the program in 1944, the VA has backed more than 19 million loans valued at more than $1 trillion. In 2011, there are 27 million current and former service members eligible for a VA-insured home loan.
- A VA loan can be used to buy or build a home, co-op or condominium. The loan also can be used to refinance an existing loan or to make energy-related improvements to a home. VA loans also can be used to purchase a manufactured home or a lot for home building.
- In general, current or former members of the military who have not been dishonorably discharged are eligible for the VA loan program. Veterans must meet minimum service requirements, which vary. For example, soldiers with 90 days of service in wartime or 180 days of peacetime service are eligible. National Guard members are eligible, as are members of the regular armed forces.
- The VA does not set a limit on the amount of a home loan. However, market conditions and private-sector loan rules generally set limits on VA loans that vary from year to year. In 2011, the market limit is $417,000 in most of the United States and $625,500 for loans in certain areas, such as Hawaii and Alaska.
- Veterans who want to participate in the VA home loan program must work with a VA-approved private-sector bank and obtain a "Certificate of Eligibility" from the VA to document their status as eligible veterans; you can apply for the certificate online. The rest of the application process is handled by the lender and is similar to the application process for a regular home loan.
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