The VA loan program was developed specifically to help veterans buy homes. It is both an incentive and a reward for service to our country. Still, many veterans do not take advantage of the VA lending program. After working with veterans to access their benefits, it has become apparent to many VA home loan specialists that the reason may be that veterans and service people do not have adequate VA loan information, and so do not fully understand the program, its impact, its benefits, and their rights.

VA Loan Information—The Basics

A VA loan is a home loan, or mortgage, that is guaranteed by the federal government. It is designed to ensure that eligible veterans have access to homeownership by reducing the risk of the loan to the creditor. In the case of VA lending, the loan is not actually made by the government, it is only secured by the government; a bank or lender makes the actual loan.

The backing of the government's guarantee makes it so that veterans can qualify for home loans with no money down while still securing very favorable interest rates and terms (because the government backs the loan, there is little risk to the lender, and so VA lending providers have little concern over losses due to default).

The benefit to a VA lender is protection; the benefits for veterans are

• Ability to buy a home with no money down
• Low interest rates
• Easy qualification
• No required mortgage insurance (PMI)
• VA loans with no out of pocket closing costs

In addition to loans for first-time homebuyers, veterans can also take advantage of VA refinance options and re-use their eligibility once the terms of a first VA loan have been met (the loan has been paid off). The VA refinance is a simple and beneficial process too, and is an excellent tool for helping veterans reduce their payments and/or maximize their home mortgage.

The VA Home Loan Process

The VA home loan process is not complicated. In many ways, it is no different than applying for any other home loan, except perhaps that qualification is simpler and less involved because of the involvement of the federal government's guaranty.

The first thing to do when applying for VA loans is to locate a VA lender who is qualified to operate in your state. Once you've located a state-approved lender, the process is the same; so for instance, the Colorado VA home loan process will be essentially the same as the process in Massachusetts or Alaska.

The Colorado VA home loan process might look something like this:

• Locate a VA approved lender (the lender must be approved by the VA—not all lenders deal in VA loans; you can find qualified providers of VA loans online)
• Make sure the lender is licensed to issue mortgages in your state (even in Massachusetts you can use a Colorado lender so long as they are licensed to issue Massachusetts loans)
• Contact the lender; the lender should assign a VA loan specialist to your case, who will then walk you through the rest of the process
• Provide proof of your VA eligibility; a VA approved lender can utilize the ACE system to help you prove your eligibility
• Apply for your VA loans online, in person, or buy filling out the required documentation. At this point the process is much like any home loan application process, and you will be required to provide income verification, credit score, and other financial information.

As you can see, the Colorado VA home loan process really includes only one additional step—proving your eligibility. The process is the same for other states, as mentioned. However, even the process of proving your eligibility can be greatly reduced by working with a knowledgeable VA approved VA lender with access to the Administration's systems.

Easy Access To VA Loan Information

With the internet, it is easy to access VA loan information and VA loans online. VA specialists make it easy to locate them and to start and manage the VA loan process through their websites. You can save time, money, and frustration by learning more about the best VA loans online and choosing the best VA loan specialists that you can find.