VA Loan Mortgage Houston

VA Loan Partners Houston

Houston VA House Loan

The History of VA Home Loans

$2000 was the maximum amount that could be borrowed by a veteran in 1944.Franklin Roosevelt’s congress came up with the Houston VA House Loan. The main reason of having the program was to ease the post traumatic effect of the soldiers when they returned home. It would help them readjust into a post war life accordingly. They would navigate about their social and economic lives with ease.

The VA document states that the VA program was an attempt to put veterans on the same level with the other citizens. The VA was authorized for the insurance of a home loans, businesses and farm through the lending institutions. The government provided a guaranty whereby in a case the veteran will default, it will pay for the loan. This gave lenders confidence to help out due to the promise of returns. Among the first people considered for the VA loans were world war two veterans.

The VA was authorized by the government to insure or guarantee business loans, farms and homes made by lenders to veterans.

The congress amended the VA loan in 1945 increasing the maximum amount to $4000 and longer time for repayment.

Massive changes were brought about in the 1950s and 60s when steps were taken by the government to include more people in the program. The people added on the program were; spouses of fallen veterans or veterans with disability. They additionally added the maximum loan to $7500 and the period of repayment even longer. Two years later they went onto include veterans who were in the Korean War.

In 1970s, termination dates were removed for veterans applying for home loans. Many veterans who weren’t eligible before went out to get the loan because of the lack of expiration dates. In this time, refinance loans were brought in to the program. In the 1980s, lenders were able to offer loan application automatically provided proof is produced. All time frames were removed. Also during the amendment, the business aspect and the farm were removed from the program. In 1992, the program was only available for veterans who served for a specific period of time. National Guard who served for at least 6 years were included in the program. They were however charged slightly higher when getting the VA home loan.

In the 2000s, home prices were higher and as a result the program increased the maximum amount of money borrowed. Veterans who were to be compensated and had not been yet were exempted from paying the VA Funding fees. As years went by, the requirements started getting stricter and hard to access especially from mortgage lenders. 

2013 was a milestone year for the program when it guaranteed the 20 millionth home loan since the program began. Last year, it celebrated the 24 millionth home loan borrower since the program began.

The VA program has served very many veterans and  it continues to do that by providing even better and easier ways to access the VA Loan Mortgage Houston. Since the start of the program, it has achieved more than it could and is continuing to help our veterans and active duty service men.