VA Home Loans

In 1944, the GI Bill of Rights was passed to provide veterans with federally guaranteed home, farm, and business loans with no down payment. The Bill quickly transformed the economy and society to help billions of veterans achieve their dreams of homeownership. In fact, from 1944 through 2006 the VA has guaranteed more than 18 million home loans valued at more than $930 billion.

For many Veterans and their families, the dream of homeownership may not be as difficult as they think. We’ve answered some of the most frequently asked questions about VA Loans.Today, more than 27 million veterans and service personnel, and surviving spouses are eligible for VA home financing. VA home loans are provided by private lenders such as Colonial. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms such as these great advantages:

  • 15 and 30 year fixed rate terms
  • No Down Payment as long as the sales price doesn’t exceed the appraised value.
  • Loan Maximum may be up to 100% of the VA-established reasonable property value.
  • No monthly mortgage insurance premium to pay.
  • Limitation on buyer’s closing costs.
  • Closing costs may be paid by the seller.
  • The lender can’t charge a penalty for paying off the loan early.
  • Don’t have to be a first-time homebuyer
  • You can reuse the benefit

Loan Limits

The VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement can borrow without making a down payment. These loan limits vary by county, since the value of a house depends on its location.


You must have suitable credit, sufficient income, and a valid Certificate of Eligibility to be eligible for a VA-guaranteed home loan. The home must be for your own personal occupancy. To receive a Certificate of Eligibility, you must have been discharged under conditions other than dishonorable and meet specific service requirements. Other eligibility requirements may be necessary.

Even though you may have already used your loan benefits, it may be possible for you to buy a home again with VA financing using the remaining or restored loan entitlement. Before arranging for a new mortgage to finance a home purchase, you should consider all the advantages of VA home loans.

If you are eligible for a VA home loan, it may be your best option to realize the dream of home ownership with the specific terms provided by the VA. Contact your Colonial Loan Officer, or you can learn more by visiting


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