| VA Loans or, Veteran Loans, are loans issued by | | | | for the American economy just a decade after the |
| major lending companies to American war veterans | | | | great depression and helped build one of the strongest |
| and their spouses. The VA is an abbreviation for the | | | | nations today. |
| U.S. Department of Veteran Affairs, a branch of the | | | | This borrowing process is still very popular among |
| government whose sole purpose is to help American | | | | modern day war veterans but is more heavily focused |
| war veterans start a normal life immediately upon | | | | on home mortgages and home improvements. VA |
| returning home. These loans were designed and issued | | | | loans of up to $417,000 for homes can be issued with |
| in order to give veterans an opportunity to borrow | | | | no down payment, and just over a 2% VA funding fee |
| money at a better rate than normal and to get that | | | | for first time homebuyers. The insurance on loans |
| money insured. | | | | provided by the VA is up to 41% of the borrowers |
| Historically, VA loans started in 1944 after World War II, | | | | monthly income. |
| but are more commonly known as the "G.I. Bill" or the | | | | One of the benefits of getting a home loan as |
| Serviceman's Readjustment Act. This loan provided | | | | opposed to borrowing money through a credit card is |
| funding for college educations, new businesses, and | | | | the equity homeowners acquire. This home equity can |
| new homes for all the people returning from the war. | | | | also be borrowed on in order to pay off credit card |
| The large government lending created a strong boost | | | | debt, which charges much more interest over time. |