This is a guest post by Kevin.  Mortgages normally aren’t part of military surplus gear, but since many of the readers here are military service members (including myself), this seems like something you may be interested in.

Get to Know Your VA Benefits

One of the great benefits of serving in the military is the opportunity of obtaining a VA Home Loan. This is one of the benefits offered through the military that many service members are still unaware of, so know that if you served, you earned it!

If you are thinking about purchasing a home, check with your loan officer to see if you are eligible for the VA Home Loan. It is important to have a mortgage specialist who knows the ins and outs of the VA Loan because of the advantages other loans do not offer.

The title “VA Home Loan” leads some to believe that the Department of Veterans Affairs actually lends out the money. This is not true. It is called the VA Home Loan by mortgage brokers, lenders and real estate agents because it refers to the loan that is available only to those who have served or are currently serving in the military (and in special circumstances, spouses of military service members. See below for eligibility requirements or ask your loan specialist).

The VA created the VA Loan Guaranty Program as a way to thank the United States Military men and women. In order to assist in a home purchase, the VA guarantees that they will back up about a quarter of a borrower’s mortgage if he or she were to default on the loan. This allows the lender greater security and in turn, borrowers are offered more favorable terms.

Here are a few of the many great benefits of a VA Loan:

• No down payment
• Borrow up to $417,000 — limit may be higher depending on geographical area
• No Private Monthly Insurance
• No pre-payment penalties
• Sellers may pay up to 6 percent of closing costs

Who may be eligible?

Military men and women who have served active duty for 181 days or three months during war time

Men and women who have completed at least six years in the National Guard or Reserves

Un-remarried spouses of Veterans who died while serving or from a service-related disability; or un-remarried spouses of a service member missing in action or prisoner of war

It’s important to note that about 8 in 10 VA Loan borrowers might not qualify for a conventional loan. This is yet another reason the VA Loan is such a good option if you are a service-person looking to purchase a home.