Eighteen Million And Counting

By Author: Peter Wendt
Total Articles: 34
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Background:
The U.S. Department of Veterans Affairs (VA) traces its roots back to the days of the pilgrims who provided funds to disabled veterans. Today, the VA is a vast network where veterans can receive assistance with various aspects of life including education, health care, pensions and burial. One of the programs offered by the VA has helped over 18,000,000 veterans secure financing for home loans.

The Beginning:
The first housing provided to indigent and disabled veterans began after the Civil War. The disability did not have to be service related. The federal government maintained housing that provided room and board. Minor medical care could also be obtained in these homes. Veterans were also given priority under the Homestead Act of 1862 which granted Western lands at $1.25 per acre. World War II and the millions of veterans brought about by this war were the catalyst for sweeping reform of veterans’ benefits. In 1944, Congress passed the Servicemen’s Readjustment Act, better known as the G.I. Bill of Rights. Under this act, veterans received housing benefits.

The Program:
Under ...
... the G.I. Bill of Rights, veterans could apply for loans for businesses, homes and farms. Home loans could be obtained up to $2,000 with a maximum term of 20 years and maximum interest rate of 4 percent. The government guaranteed 50 percent of the loan amount. There was also a time limit imposed on how long federal loan guarantees would be available, two years after discharge or the end of World War II which ever was latest.

The Changes:
By 1945, economic conditions caused Congress to change the maximum loan amount to $4,000 and the term to 25 years for homes and 40 years for farm loans. The two year limitation had been extended to ten years.
In 1950, the government again made changes to the loan program. Guaranteed amounts increased from 50 percent to 60 percent to a limit of $4,000 for homes and $7,500 for farms. Terms increased to 30 years. Widows who lost their husbands who died in service or as the result of service diseases or injury were enabled to apply for their deceased husband’s housing benefits. Lenders set limits on fees and charges that could be imposed on the veteran; and, the VA could now impose building standards.

Today’s Program:
From 1950 to today, the government has continued to make changes to the loan program. The 10-year application deadline has been deleted. Veterans can secure financing for condominiums and manufactured homes. Loan amounts of $729,000 can be obtained without down payments with rates of around 4 percent based on current economic conditions. Refinancing options are available through the VA program. Loans paid off or assumed by other qualifying veterans reinstate the original benefit to the veteran up to three times. Currently the VA has helped 18,000,000 veterans and their widows achieve an American dream, a home.

Peter Wendt is a freelance article writer and commercial researcher working out of Austin. To find out more on this topic, Peter suggests you take a look at VA mortgage , which he has found to be a useful resource.