History of VA loan in Timeline

A VA loan is a mortgage loan in the United States guaranteed by the Department of Veterans Affairs (VA). It assists American veterans, active military members, reservists, and eligible surviving spouses in purchasing homes, including single-family homes, condominiums, multi-unit properties, manufactured homes, and new constructions. While the VA doesn't originate loans, it establishes eligibility criteria, sets minimum guidelines, and provides financial guarantees for qualifying mortgages, making homeownership more accessible for veterans and their families.

1944: Home Loan Program Established

In 1944, the Home Loan program was established as part of the original GI Bill of Rights for returning World War II Veterans.

1944: Servicemen's Readjustment Act Passed

In 1944, the United States Congress passed the Servicemen's Readjustment Act, which provided a wide array of benefits to eligible veterans, including the VA loan guarantee program. This act authorized the VA to guarantee or insure home, farm, and business loans for veterans.

1970: Veterans Housing Act of 1970

In 1970, the Veterans Housing Act eliminated all termination dates for applying for VA-guaranteed housing loans. The 1970 amendment also provided for VA-guaranteed loans on mobile homes.

1978: Veterans Housing Benefits Improvement Act of 1978

In 1978, the Veterans Housing Benefits Improvement Act expanded and increased housing benefits for millions of American veterans.

October 1992: Veterans Home Loan Program Amendments of 1992

In October 1992, the Veterans Home Loan Program Amendments of 1992 expanded program eligibility to include Reservists and National Guard personnel who served honorably for at least six years without otherwise qualifying under the previous active duty provisions. Such personnel are required to pay a slightly higher funding fee when obtaining a VA home loan.

2009: Establishment of the National Center on Homelessness Among Veterans

In 2009, the National Center on Homelessness Among Veterans (NCHAV) was established to support the execution of the U.S. Department of Veteran Affairs’ (VA’s) Five Year Plan to End Homelessness Among Veterans.

2010: Death of Iraq War Veteran

In 2010, an Iraq War Veteran died, whose surviving spouse purchased a home in Woodbridge, VA with the 20 millionth home loan guaranteed by the VA.

August 2012: Congress Passes Bill on Veteran Disability Benefits

In August 2012, Congress passed a bill that allows a Veteran to receive the benefits of having Veteran Disability while it is still pending. The funding fee paid can be refunded when a determination is made and paperwork is received.

October 26, 2012: VA Guarantees 20 Millionth Home Loan

On October 26, 2012, the Department of Veterans Affairs announced it had guaranteed 20 million home loans since its home loan program was established. The 20 millionth loan was guaranteed for a home in Woodbridge, Va., purchased by the surviving spouse of an Iraq War Veteran who died in 2010.

June 22, 2019: VA Loan Program 75th Anniversary

On June 22, 2019, the VA loan program celebrated its 75th anniversary. The Department of Veterans Affairs announced the program had guaranteed 24 million VA home loans since its inception.

June 25, 2019: Blue Water Navy Vietnam Veterans Act of 2019 Signed into Law

On June 25, 2019, the Blue Water Navy Vietnam Veterans Act of 2019 was signed into law, which temporarily increased the VA funding fee for active duty service members and veterans starting January 1, 2020. The law also removed VA county loan limits for homebuyers with full VA loan entitlement and made Purple Heart recipients exempt from paying the VA funding fee.

2019: Blue Water Navy Vietnam Veterans Act of 2019

Due to the Blue Water Navy Vietnam Veterans Act of 2019, the VA funding fee is equalized for all branches of service starting January 1, 2020. For active duty military members and veterans, this means an increase in VA funding fee costs for a period of 2 years.

January 1, 2020: Increased VA Funding Fee

Starting January 1, 2020, the VA funding fee was temporarily increased for active duty service members and veterans due to the Blue Water Navy Vietnam Veterans Act of 2019.

2020: Over 25 Million VA Home Loans Insured

As of 2020, the government has insured over 25 million VA home loans.

October 2022: VA Ended Partial Claim Payment Program

In October 2022, the VA ended the Partial Claim Payment program, putting thousands of veterans who took COVID forbearances on their mortgage payments at risk of losing their homes.

June 2023: House Committee Approves Major Richard Star Act

In June 2023, the House Armed Services Committee approved the Major Richard Star Act, which would allow veterans who receive medical retirement before 20 years of service to receive both full military retirement pay and disability pay. The bill requires full offsetting for its Congressional Budge Office estimated cost of $9.75 billion over the next ten years to become law.

November 11, 2023: NPR Investigation into Veteran Foreclosures

On November 11, 2023, NPR published an investigation into thousands of veterans at risk of losing their homes due to the VA ending the Partial Claim Payment program in October 2022. Following the investigation, US Senators wrote an open letter to the VA to pause the foreclosure process, and on November 17, the VA halted VA loan foreclosures for six months.