It is Memorial Day, a day to remember our fallen soldiers as well as a day to appreciate
the men and women who put their lives on the line every day to protect our freedoms. In the
spirit of appreciation, this article will briefly discuss the history of VA loans.
In 1944, Congress enacted the Serviceman’s Readjustment Act (“SRA”). The SRA
provided qualified veterans with a myriad of benefits, but the portion of the SRA that guaranteed
loans were widely viewed as the most beneficial of those benefits. In a nutshell, the SRA
authorized the VA to guarantee loans (home and business) made to eligible veterans; this
increased a veteran’s ability to obtain a loan in the first place (lending institutions are necessarily
concerned with a borrower’s ability to pay them back, and that concern becomes non-existent
when it is backed by the U.S. Government). As of today, VA loans have guaranteed over 20
million homes in the United States.
In 1970, Congress enacted The Veterans Housing Act of 1970, which made it easier for
eligible veterans to apply for home loans and extended those benefits to the purchase of mobile
homes. Eight (8) years later, in 1978, Congress enacted the Veterans Housing Benefits and
Improvement Act, which granted eligible veterans even more benefits in relation to obtaining
loans.
Until 1992, only veterans who were active duty during specific periods of time (high
conflict) were eligible for the benefits of the laws we have discussed. In 1992 however, Congress
passed the Veterans Home Loan Program Amendments, which expanded eligibility to members
of the Reserve and National Guard – provided they had served for six (6) years without
qualifying under other provisions of the law and had performed their services honorably.
At the Chernov Team, we appreciate our service members and everything they have done
for us. While we are grateful for the government’s assistance in providing for the men and
women who served, we know that more can be done. At the Chernov Team, we understand that
knowledge is power, especially when it comes to understanding the benefits our service members
are entitled to. You fought for us, and we will fight for you to find, and purchase, your dream
home. At the Chernov Team, we know that whoever comes to the table most prepared leaves with
the most, and the Chernov Team always leaves the table with the most.