VA-backed purchase loans are a powerful tool for veterans as they embark on the homeownership journey. Enacted in 1944, the Servicemen’s Readjustment Act, or G.I. Bill, included revolutionary benefits for WWII veterans, such as funds for college education and unemployment insurance. Importantly, it introduced the VA loan guarantee program, meaning millions of veterans could now buy, repair, and build their own homes with loans backed, or insured, by the Department of Veterans Affairs. In the decades since the G.I. Bill’s unveiling, Congress has made several amendments expanding eligibility to give veterans more avenues to homeownership.
Veterans and their families continue to benefit from VA loans, with over 24 million loans guaranteed by the VA to date. The modern VA-backed purchase loan has a host of benefits, including no down payment and generally better terms and interest rates compared to other loans from private banks, mortgage companies, and credit unions. Additionally, borrowers have the ability to borrow up to the Freddie Mac and Fannie Mae conforming loan limit, incur fewer closing costs, and face no penalty fee if the loan is paid off early. Finally, VA-backed loans do not require private mortgage experience (PMI) or mortgage insurance premiums (MIP).
Those who qualify for a VA-backed purchase loan can use them for a number of scenarios, including purchasing a home, condo, manufactured home or lot, or building a new home. Veterans and their families can use these loans to purchase their first home, and can even use this benefit again to sell or refinance a home bought with a VA-backed loan.
Having fewer costs associated with homebuying helps veterans and their families access housing and build generational wealth.
Additionally, Native American veterans can benefit from a Native American Direct Loan, allowing qualified indigenous and First Nations veterans to buy, finance, improve, or build a home on federal trust or tribal lands. These loans are issued directly by the Department of Government Affairs, and offer benefits such as low closing costs, low interest rates, zero down payment, low VA funding fees, and more.
Having fewer costs associated with homebuying helps veterans and their families access housing and build generational wealth. Reducing barriers to homeownership increases purchasing power and helps veterans build stronger communities.
Since 2021, SimpleNexus is proud to have facilitated 163,404 VA loans through our platform, with over 41,000 in 2022 alone. Our seamless end-to-end solution ensures that lenders have the resources to get veterans into their dream homes.