VA Loan
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs.
It is available to eligible veterans, active-duty service members, and qualifying spouses.
VA loans are issued by private lenders and backed by a federal guarantee.
Why It Matters in a Mortgage
VA loans provide:
- 0% down payment options
- No private mortgage insurance
- Competitive rates
- Limited closing costs
Because of the government guarantee, lenders assume less risk.
Borrowers typically pay a funding fee unless exempt due to disability status.
How It Works
Borrower obtains Certificate of Eligibility (COE).
Applies through VA-approved lender.
Loan meets VA underwriting standards.
Guarantee protects lender against certain losses.
VA Loan vs. Conventional Loan
VA → No PMI, no down payment
Conventional → May require both
FAQs About VA Loans
Can VA loans be reused?
Yes, subject to entitlement limits.
Are there loan limits?
Limits may apply in certain circumstances.
Is the funding fee mandatory?
Often yes, with exemptions.
Related Terms
