May 13, 2019
Orion is proud to note that this year marks the 75th anniversary of the GI Bill which created the VA home loan program. Since 1944, nearly 24 million veterans and family members have purchased a home using a VA-backed loan.
Orion prides itself in our loan programs and its STAR Portal where VA housing assistance for our broker’s clients help servicemembers, veterans, and their surviving spouses to buy a home or refinance a loan with VA direct and VA-backed home loans. Experienced brokers know that the VA also offer benefits and services to help them build, repair, or keep their current home. This includes grants for veterans with service-connected disabilities who need to adapt their home to live as independently as possible.
Your clients will still need to have the required credit and income for the loan amount they want to borrow. But a VA loan with Orion may offer better terms than with a traditional loan from a private bank, mortgage company, or credit union. For example, nearly 90% of VA-backed loans are made with no down payment.
With a VA direct home loan, VA serves as the mortgage lender. Under this loan, the Veteran works directly with VA to apply for and manage the loan. The Native American Direct Loan (NADL) program often has better terms than a home loan from a private lender (a private bank, mortgage company, or credit union).
With a VA-backed home loan, VA guarantees (or stands behind) a portion of the loan your client obtains from Orion. If a VA-backed home loan goes into foreclosure, the guaranty allows the lender to recover some or all of their losses. Since there’s less risk for the lender, they’re more likely to give your client the loan under better terms. In fact, nearly 90% of all VA-backed home loans are made without a down payment.
In general lenders follow VA standards when making VA-backed home loans. We may also require a borrower meet additional standards before providing credit. These standards may include having a high enough credit score or getting an updated home appraisal (an expert’s estimate of the value of the home).
Find out how to apply for and manage the Veterans housing assistance benefits your veteran client has earned. Visit the U.S. Department of Veteran Affairs website for detailed information on home loan programs for Veterans, and be sure to speak with an Orion AE about our VA program.