The VA does not directly give loans to veterans and service members. Instead, the VA guaranties a percentage of the loan, which allows veterans, service members, reservist, and unmarried surviving spouses to find competitive interest rates, usually without a down payment. However, manufactured homes do require a down payment, as well as home, which has a purchase price greater than the estimated value.
NOTE: The VA will make direct loans to Native American veterans, who wish to buy, build, or improve a home on tribal lands, or an eligible disabled veteran, who qualifies for a Special Adapted Housing grant.
Loan Guaranty uses:
- Buy a home or condominium
- Construct a new home
- Improve or repair a home
- Refinancing
- To purchase a manufactured home and/or lot
- To purchase and improve a lot in order to place an owned and occupied manufactured home on
- Refinancing a manufactured home in order to purchase a lot
NOTE: VA will not give loan guaranties to purchase businesses or farms (unless a farmhouse is included, which will be occupied by the person receiving the guarantee)
Eligibility
Unless the veteran was discharged for a service-connected disability, he/she must have received a discharge under honorable conditions. The veteran must also have met certain time in service requirements.
- WW II - 09/15/1940 through 07/26/1947 (90 days)
- Post WW II - (181 days)
- Korean War - 06/27/1950 through 01/31/1955 (90 days)
- Post Korean War - (181 days)
- Vietnam War - 08/04/1964 through 05/07/1975 (90 days)
- Post Vietnam War - 05/08/1975 through 09/07/80 (181 days)
- 24 Month Rule - 09/09/1980 to present (2 years)
- Reservist and National Guard have different service requirement. They are eligible if they were activated after 08/01/1990 and served at least 90 continuous days of active duty
- Members of the Select Reserve are eligible after 6 years of honorable service
Eligibility of non-veterans/service members
Unmarried spouses of veterans/service members who died on active duty, surviving spouses who remarry after the age of 57, Spouses of active-duty service members listed as MIA or POW for more than 90 days, U.S. citizen who served in the armed forces of an Allied government during WW II.