You may know that the VA loan program is one of the greatest benefits of military service, but what is the history behind VA loans?
In 1944, the U.S. government created a military loan guaranty program as part of the original Servicemen’s Readjustment Act, otherwise known as the GI Bill of Rights, to help returning service members or their surviving spouses in the purchase of homes. The result is the VA Home Loan, which is a mortgage loan issued by approved lenders and guaranteed by the United States Dept of Veterans Affairs.
The VA Loan Program was Signed into law by President Franklin D. Roosevelt on June 22, this sweeping legislation aimed to level the playing field for those who served our country during World War II, and in many ways it reshaped the course of America. VA loans played a critical role in that development.
After 76 years, this government-backed Home Loan program is as important as ever. The VA Home Loan program has much less stringent credit requirements that other mortgage programs and a zero down payment. VA loans hve been a significant benefit for military borrowers, many of whom would otherwise struggle to secure home financing under other circumstances and through different Mortgage Programs.
The VA mortgage program celebrates its 76th anniversary in 2020 and since its inception has placed more than 24 million veterans and their families in homes.