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Since 1944, the VA home loan program has served an important role in the pursuit of providing support to veterans looking to buy a home. With its low credit requirements and eliminated need for a down payment, the VA home loan program has enabled more veterans to secure mortgages on homes and achieve a higher standard of life. From the time of its inception, the VA home loan program has backed more than 24 million home loans for veterans and their families.


The program began when President Franklin D. Roosevelt signed the Servicemen’s Readjustment Act into law. This act is better known as the GI Bill of Rights. Because credit is so important in determining whether an individual is qualified for a home loan, the government sought a way to help veterans, who had been serving overseas, become homeowners. Rather than directly provide veterans with money to assist in purchase a home, government officials instead determined that ensuring a home loan would be a better long-term approach to solving the issue.


In addition to guaranteeing veterans would qualify for home loans, the government also provided extra insurance to lenders to further incentivize them to loan to veterans. By promising to pay a portion of the loan in the case of a borrower defaulting, the government ensured lenders that the loans were not excessively risky.


At first, the VA home loan program was focused on World War II veterans, but it has since expanded to include more individuals. Over time, the program slowly extended to different groups of veterans, providing only for those who served during set periods of time, but today, the VA home loan program is open to all veterans who were honorably discharged.  Some additional amendments that served to better provide for veterans include the 1970 amendment which eliminated the termination dates for all loan applications as well as the Veterans Housing Benefits Improvement Act of 1978


Because the program was first launched in the 1940s at a time where populations were smaller and homes were less expensive, it was necessary to make adjustments over time so that the program could best serve the veterans who devoted so much for the sake of the country. With low interest rates and loan guarantees, the VA home loan program strives to enable veterans to purchase quality homes that will suit their needs.