The Gift of Giving Back: VA Loans

This is a significant week for American military members. Scores will stream through busy airports on their way home for the holidays. Others are preparing to return to Iraq, Afghanistan or another far-flung post.

It’s an emotional, meaningful stretch. It’s also a great time for family members and friends to ensure their loved ones in the military are aware of the benefits earned by their sacrifice.

As a way to serve those who have served, the U.S. government in 1944 created a home lending program especially for service members.

Almost seven decades later, VA loans are still going strong. In fact, they had a huge year in 2009, with loan volume up 80 percent from the year before.

But we still need to do more when it comes to awareness. Only a fraction of the nation’s 24 million veterans have used their VA entitlement to buy a home. What’s worse is that about 20 percent of veterans don’t even know there’s a program dedicated to helping them purchase or refinance a home.

The reality is that thousands of veterans and active-duty members are eligible right now. VA loans come with some significant benefits, including no down payments on homes worth up to $417,000 (and even more in costlier parts of the country) and no private monthly mortgage insurance.

The VA Loan Guaranty Program has guaranteed more than 18 million home mortgages since World War II. These loans are a lifeline for a group of people who can struggle to build a solid financial profile because of frequent moves and deployments overseas.

Please take a moment this week to make sure the service members in your life are at least aware of the VA’s lending and refinance programs. After all, they were established as a small way to thank those who have given so much.