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VA Home Loan 2021

VA Home Loan 2021 and the changes to VA Home Loans

Introduction- What is VA Home Loan?

VA (Veteran Affairs) Home Loans is a mortgage associated with a US governing body, called the Department of Veterans’ Affairs. The Department of Veteran’s Affairs or “VA” insures private lenders who actually provide the loan to the borrower.  Examples of private lenders include mortgage banks, depositiories or credit unions. A VA Home loan insures the lender against a loss or default on the loan. 

The VA Home Loans are only eligible for the people associated with the US military, qualified American veterans, and their surviving spouses. 

If you are eligible for a VA Home loan, then you can complete the VA mortgage application by selecting a VA Home Loan expert here.  Not all lenders provide the VA home loan and your best served utilizing an expert. 

VA Home Loan 2021 and the changes to VA Home Loans

Changes in VA Home Loan 2021

In 2021, the US Congress has promised a whole set of changes to the VA loans. The department of veterans’ affairs and President Donald Trump have worked hard to find a mutual agreement within those changes. Now, in 2021, the legislation has promised the following modifications.

1.     Medal of Honor Pension

If the service member has passed away, the relatives will not receive the medal of honor winners’ monthly pension. Instead, it will get paid to their spouse. However, spouses who receive DIC (Dependency Indemnity Compensation) do not belong to this category.  It is the only restriction in this change. According to the veterans’ affairs, the medal of honor pension is approximately $1400 per month. It changes gradually as per inflation.

2.     Life insurance

According to the agreement, the VA Home loans will provide all the oldies (above 81 years of age) a whole-life policy by 2023. This policy draws comparisons with the DGLI (Veterans Group Life Insurance) policy. However, the difference between these two policies is that you must get yourself registered for the VGLI policy 16 months after disconnecting from the service.  This policy has no restrictions regarding the time limit. There will be a $40,000 payout provided to the veterans as soon as the procedure commences. 

3.     Home loans

If you are a National Guard member but do not have an active working service, you can receive the VA Home Loans in 2021. If a person has at least 90 days of service days under his belt, he is eligible for the home loan program. Out of those three months, one month has to be where the person has given service consecutively. These people are referred to as the “Guard and Reserve” members by the United States Law. As of 2021, only these people are eligible for a home loan.

4.     Memorial Benefits

Once the bill becomes part of the law in 2023, the VA Home Loans will pay for the dead veteran’s transportation to the veterans’ cemeteries or the nearby graveyard. 

However, by 2023, the VA Home Loans will ensure furnishing urns to store the dead veteran’s remains. The veteran’s family will get to choose either to get the free headstone or the burial urn. 

Apart from that, if the veterans get provided the VA-issued headstone, they can have their spouse’s name carved on their tombstone for free. However, this will only get applicable by 2023. Currently, the family has to pay for the spouse’s name.

5.     Native US-based residents

After completing one year under these VA Home Loan changes, all the US-based residents will be relieved of all the VA copays for medications and healthcare. Even if the residents have a disability associated with the service, it does not matter. The residents are now entirely exempted from this. 



There are massive talking points regarding the set of changes agreed by the president and the veterans’ affairs department. There are mixed opinions if we talk about positives and negatives. If you are a native American, you get relief. If you are a spouse of an active-duty service member who has passed away, the VA Home Loan 2021 provides for you.

The VA loan changes in 2021 have also implemented a long-term plan to help Veterans. The life insurance plan shows that the hierarchy is willing to provide relief to American veterans. The active-duty service members will have more capacity for borrowing purposes but will have to put up higher fees as suggested by the VA Home Loan 2021.

VA home loans are a huge benefit to both active-duty service members and veterans. Their interest rates are very competitive and they have no down payment up to that counties FHA loan limit. There is however a VA funding fee which is in effect mortgage insurance in the event of default.

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