The VA loan program was created to provide housing and assistance for veterans and their families. To be eligible for a VA loan, the veteran must have served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime.
The VA will guarantee a maximum of 25% of a home loan amount up to $104,250, which limits the maximum loan amount to $424,100. The veteran may borrow the amount of the purchase price or the reasonable value of the property, whichever is less. All veterans must qualify; they are not automatically eligible for the VA loan program.
A VA guaranteed loan is made by private lenders or mortgage companies to eligible veterans for the purchase of a home that must be their own personal residence.