VA Home Loan Guaranty Program: How to Help Your Veteran Clients

Helping service members, veterans and surviving family members obtain homeownership is simpler than ever with the VA Home Loan Guaranty Program.

Through the program, the VA guarantees a portion of a buyer’s loan against loss and helps lenders provide buyers with more favorable financing terms. It helps those eligible with housing-related programs to assist with buying, building, repairing, retaining and adapting homes.

NAR, along with the U.S. Department of Veterans Affairs, created two videos on the VA Home Loan Guaranty Program to help Realtors® better understand the program and help clients who wish to utilize it. Part One: VA Loans 101 goes in depth about the program and what it means for agents and veteran clients. Part Two: Reducing Barriers for VA Borrowers offers a discussion on obstacles facing those using the programs, including misconceptions and improvements the VA has made to prior issues.

John E. Bell II, acting executive director of the Department of Veterans Affairs, Loan Guaranty service, said for those eligible to use the program, they need no down payment. The program has  competitive interest rates, which are negotiable, offers controlled closing costs with no prepayment penalties and no mortgage insurance, he said.

“The process is pretty much like any other loan,” said Bell.

Eighty percent of veteran buyers who use the program close, the highest of any loan program. Their average credit score is 722 and the average debt-to-income ration is 40.6%. Nearly a quarter of those using a VA loan make a down payment, which is not required.

“It’s important for veterans to stay in homes,” said Bell said, noting that the VA is there to help homebuyers through the challenges of homebuyers. In 2021, 1.44 million veterans used the program.

NAR also offers a Military Relocation Professional certification for members who want to assist current and former service members.