As we salute current and retired members of the military this Veterans Day, we also pause to give thanks for their unwavering dedication to protect our American ideals of life, liberty, and the pursuit of happiness.

Home loans from the Department of Veterans Administration (VA) are one way we give back to these brave men and women. Since 2010, Bay Equity Home Loans has funded 10,867 VA loans for a total of $3,699,870,249.

Bay Equity's loan officers are educated on the most up to date VA loan rules and regulations. Purchase loans can be obtained with as little as zero money down and are available at very low interest rates. VA home loans provide a lifeline for military borrowers who might otherwise struggle to secure home financing.

First created in 1944, the VA loan program has undergone many changes over the decades, and has grown exponentially with the surprising Covid-19 pandemic home-buying surge.

More than 700,000 VA loans were closed in 2020, doubling the agency’s total from five years ago. Younger buyers (aged 25 to 44) accounted for about a third of these.

In addition to low down payments and rates, VA borrowers are not required to pay private mortgage insurance (PMI). In contrast, Federal Home Administration (FHA) loans come with both upfront and annual PMI premiums, and even conventional buyers typically pay for private mortgage insurance if the down payment is less than 20%.

VA loans were created to boost access to homeownership for veteran and military families. They tend to be more a bit more forgiving in credit underwriting. Despite this flexibility, VA loans consistently rank among the lowest for default.

Refinances are also possible through the VA Interest Rate Reduction Refinancing Loan (IRRRL). These loans are typically used to reduce the borrowers interest rate and monthly payment, or to convert an Adjustable-Rate Mortgage (ARM) to a fixed rate. Bottom line: The VA home loan program is a great option for many military members.

Many real estate agents and potential qualified homebuyers incorrectly believe that it is more difficult to get approved for a VA Loan. They also wrongly believe the VA appraisal process is more difficult than conventional home appraisal process.

At Bay Equity, our loan officers make a point of knowing all the ins and outs of the VA loan process and sharing the possibilities with our real estate contacts and our clients.

Veterans may also consider “Giving to Heroes,” Bay Equity’s exclusive credit back loan program for active or retired military members and other service-focused professionals. Qualified participants receive discounted closing costs and a partial refund of real estate agent commissions.

Bay Equity Home Loans proudly supports veterans’ organizations and veterans’ charities, donating a portion of each closed VA and FHA Loan to the Warrior Foundation Freedom Station, a San Diego transitional housing community for veterans facing military retirement due to injury.