A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs and available to eligible active-duty service members, veterans, and certain surviving spouses. The government guarantee lets lenders offer favorable terms.
The signature benefit is that qualified borrowers can often buy with no down payment and without private mortgage insurance. VA loans also tend to feature competitive interest rates and limits on certain closing costs. Most borrowers pay a one-time VA funding fee, which some are exempt from.
Eligibility depends on service history and requires a certificate of eligibility. The property must meet VA condition standards. VA loans are a significant benefit that can make homeownership more affordable for those who have served.