History Behind VA Loans and the GI Bill

Posted March 31st, 2010 by nateburt

I have recently started a blog that is dedicated to Veterans and VA loans.  I have been a VA mortgage loan officer for over 8 years so I have some experience to bring to the table.  My first post I have decided to write is on the History of the VA and the GI bill.

In 1776 the Continental Congress sought to encourage enlistment in the military and curtail desertions with the nation’s first pension law.  Only 3,00 Revolutionary War veterans ever drew pensions.  Grants of public land were made to those who served to the end of the war

The General Pension Act of 1862 provided disability payments and liberalized benefits for widows, children and dependent relatives.  Union Veterans were assigned a special priority in the Homestead Act of 1862, which provided Western lands at $1.25 and acre (wouldn’t it be nice if it were still that cheap).

In 1924, the World War Adjusted Compensation Act, also known as the Bonus Act, was enacted.  The law provided a bonus that depended upon the number of days the Veteran served.  All Veterans whose service exceeded 50 days were give 20-year paid-up endowment life insurance certificates, payable in 1945.  Many Veterans, however, wanted to be paid the entire bonus immediately.  An estimated 15,000 to 40,000 Veterans, known as the Bonus Expeditionary Force, converged on Washington, DC, in may of 1932 to lobby for immediate payment.  Failure by Congress to pass this proposal resulted in many Veterans and their families building shanties in Southeast Washington.  Congress finally passed the measure in 1936 and granted Veterans a lump-sum payment.

The Servicemen’s Readjustment Act, (GI Bill of Rights), which dramatically transformed the concept of Veterans benefits, was signed into law by President Franklin D. Roosevelt on June 22, 1944.  This benefit provided Veterans with federally guaranteed home, farm and business loans with no down payment.  This feature was designed to generate jobs in the housing industry while providing housing and assistance for Veterans and their families.  Veterans could apply for loans up to $2,00, with 50 percent guaranteed by the government.

The GI Bill transformed the economy and society of the United States.  In 1950, a 1200-acre potato farm in Long Island was transformed into a 17,500 home suburban community known as Levittown.  The dream of home ownership became a reality for millions of Veterans and their families.  The GI Bill contributed more than any other program in history to the welfare of Veterans and their families, and to the growth of the nations economy.

VA’s loan guaranty program has benefited more than 18 million Veterans and dependents.  From 1944, when this program was established as part of the original GI Bill, through September 2006, VA has guaranteed more than 18.1 million home loans valued at $913 billion.  In fiscal year 2006, VA guaranteed $142,726 loans valued at $24 billion.

The United States leads the world in caring for its military Veterans.  The Department of Veterans Affairs (VA) administers billions of dollars annually in federal benefits for military Veterans and their dependents.  With more than 25,000 employees, VA is second in size only to the Defense Department among federal agencies.

The VA will continue to guarantee loans to those that serve in the military and provide value to the economy.  As a loan officer I have had the privilege in working with those employeed by the Department of Veterans Affairs.  More importantly I have help Veterans realize the dream of home ownership.

4 Responses to “History Behind VA Loans and the GI Bill”

  1. limewire

    lol fun info dude.

  2. how much should i weigh

    dang sweet story bro.

  3. nateburt

    Thanks guys I hope you follow my site

  4. Amy

    lol fun info dude.

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