Veterans Administration (VA) Home Loans
Banks and other private mortgage companies make a special type of home loan to veterans of the US Armed Services. A portion of each loan is guaranteed by the Veterans Administration (VA), and protects the lender's investment if the borrower defaults.VA Home Loan Lingo
- The guaranteed amount of a VA loan is called an entitlement.
- The current maximum entitlement for loans up to $144,000 is $36,000, with the exact figure determined by your loan amount.
- The maximum entitlement for VA home loans over $144,000 is $60,000.
An entitlement is not a cash payment to you or to the bank. It is the amount the VA promises will be paid to the lender if you default on your loan. Should that happen, the VA may pursue you to recover those funds.
Who Is Eligible for a VA Loan?
Wartime/Conflict Veterans who were not dishonorably discharged, and served at least 90 days:
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World War II
- September 16, 1940 to July 25, 1947
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Korean Conflict
- June 27, 1950 to January 31, 1955
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Vietnam Era
- August 5, 1964 to May 7, 1975
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Persian Gulf War
- Check with VA regional office for specific eligibility.
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Afghanistan and Iraq
- Check the VA's Web site for eligibility guidelines for current service in Afghanistan and Iraq.
Peacetime Service
Peacetime service of at least 181 days of continuous active duty with no dishonorable discharge.
© 2007 Scottie Watts