If you’re a Veteran, service member, or surviving spouse, one of the most significant benefits you’ve earned is the VA Home Loan Guaranty. This program has helped more than 28 million Veterans achieve the dream of owning a home since it was established in 1944. It continues to be a valuable resource, especially in today’s housing market.
So, what exactly is the VA Home Loan Guaranty? Unlike a traditional mortgage, VA-backed home loans are made by private lenders (like banks and credit unions), but the Department of Veterans Affairs guarantees a portion of the loan. This means the lender has added confidence, which can translate into better terms for you.
One of the most appealing aspects of a VA-backed loan is that you can often buy a home without making a down payment. This feature has opened the door to homeownership for countless Veterans who might otherwise have struggled to save enough for a conventional loan. Additionally, there is no private mortgage insurance (PMI), which can save you hundreds of dollars each month compared to other types of loans.
Eligible uses for a VA home loan include buying a house or condominium, building a new home, improving an existing property by making energy-efficient upgrades, or refinancing an existing mortgage. The VA also offers Native American Direct Loans (NADL) for eligible Native American Veterans to finance homes on federal trust land.
Keep in mind that while there is no required minimum credit score set by VA, lenders will still consider your credit history when you apply. You’ll also need to meet income and eligibility guidelines, which your lender can explain in detail.
If you’re interested, the first step is to apply for a Certificate of Eligibility (COE). This document proves to your lender that you meet the requirements for the program. You can apply for your COE online through VA.gov, by mail, or through your lender, many of whom can access VA’s online system to issue the certificate quickly.
The VA Home Loan Guaranty isn’t just another mortgage option—it’s a well-earned benefit that can make owning a home more affordable and attainable. If you’d like to learn more, please contact your lender or a VA home loan representative at 877-827-3702.
Brad Anderson and Melissa Crandall are the Lake County Veterans Service Officers and can be reached at 218.834.8326 or cvso@co.lake.mn.us
Karen Christianson is the Cook County Veterans Service Officer and can be reached at 218.387.3639, or karen.christianson@co.cook.mn.us
