Pacific Mortgage Group and other lenders make VA loans every day. Guaranteed by the federal government, a VA loan allows current and former members of the US Armed Services to obtain financing they might not otherwise be able to afford. VA loans are so sure and solid, one might think they’ve been around forever. Actually, this is not the case at all. In fact, the VA loan program almost did not happen at all.
The idea for VA loans began after World War I. At the time, discharged service members were given $60 in severance pay and a train ticket home. When the Great Depression hit hard, congress pushed through a bill called the World War Adjusted Act of 1924. The bill offered money to soldiers based on the number of months served. The stipulation, however, was that these monies could not be collected until some 20 years later. This led to protests in Washington DC and many veterans were arrested. After World War II, congress did not want a repeat of the unrest that followed WWII.
Originally signed into law by President Franklin D. Roosevelt in 1944, the GI Bill of Rights was drafted by national commander of the Foreign Legion, Harry W. Colmery. The bill moved quickly through congress, all except for the part about unemployment benefits. Formally called the Servicemen’s Readjustment Act of 1944, the bill proposed benefits to pay for education and home ownership along with a $20 weekly stipend meant to cover living expenses while a veteran sought gainful employment after being discharged from the service. Congress was deadlocked about the weekly pay, but the bill eventually passed.
The original GI Bill lasted from 1944 to 1956. During that time, VA loans allowed service men and women to purchase more than two million homes in the United States. In 1984, Gillespie V. “Sonny” Montgomery presented a revamped version of the GI Bill to congress. The bill was approved and reworked again 2008. Today, the GI Bill provides cash for education, living expenses, VA guaranteed home loads along with other important benefits earned by modern soldiers and combat veterans.
VA loans offer a way for service members to participate in the American Dream.
Pacific Mortgage strives to be your authority on everything to do with loan products. If you would like to know more about VA loans and how you may qualify, please contact us at your earliest convenience.