The VA Loan became known in 1944 through the original Servicemen's Readjustment Act also known as the GI Bill of Rights. The GI Bill provided veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans.
The VA will guarantee a maximum of 25 percent of a home loan amount up to $106,025, which limits the maximum loan amount to $424,100. Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed. Being a veteran doesn't make a homebuyer automatically eligible for a home loan, you must meet both service requirements and credit/income requirements to be eligible.