VA Loans

What is a VA loan?

A VA loan is a mortgage given by a private lender, such as a bank, credit union, or mortgage firm, and guaranteed by the United States Department of Veterans Affairs. Because a VA loan normally does not demand a down payment, it can make it easier to buy a home.

VA loans are only available to qualified veterans, active-duty military personnel, and select surviving spouses. In 1944, the GI Bill of Rights established the VA home loan program to assist veterans in reintegrating into civilian life following World War II.

How do VA loans work?

If a borrower fails to make payments on a VA loan, the government will reimburse the lender a portion of the amount. This assurance lowers the risk for lenders, allowing them to offer more attractive conditions and eliminate the need for a down payment.

You can apply for a VA mortgage through a lender of your choice if you are eligible. VA loans are offered by many lenders, but not all, and certain lenders specialize in assisting VA loan borrowers.

VA loan eligibility

You’re an active-duty military member or a veteran who has served for the required amount of time.

You haven’t remarried or remarried after age 57 or Dec. 16, 2003, and you’re the surviving spouse of a military member who died while on active duty or from a service-connected disability. Spouses of prisoners of war or missing in action service members are also eligible.

You meet the lender’s credit and income requirements. Although the VA does not mandate a minimum credit score for VA loans, lenders are free to set their minimum requirements. Your income and debts will be taken into account by the lender when determining your ability to repay the loan.

The property you intend to acquire complies with all applicable safety and building rules, and it will serve as your principal dwelling.