Also written as:
VA
A mortgage backed by the U.S. Department of Veterans Affairs, available to eligible service members, veterans, and surviving spouses. No down payment required and no monthly mortgage insurance.
VA loans are one of the strongest mortgage benefits in the country, available exclusively to active-duty service members, veterans, National Guard and Reserve members who meet service requirements, and certain surviving spouses.
The headline benefits: 0% down payment on most loans, no monthly mortgage insurance (a huge cost saving over conventional or FHA), and competitive interest rates. There IS a one-time VA funding fee (typically 2.15% of the loan for first-time use), which can be rolled into the loan.
To use a VA loan, you need a Certificate of Eligibility from the VA. Most service members and veterans qualify. The loan can be reused multiple times over your life.
Example
An eligible veteran buying a $400,000 home with a VA loan puts $0 down. The VA funding fee of $8,600 (2.15%) is rolled into the loan. They have zero monthly mortgage insurance.
Also known as
VA mortgage, veterans loan, Department of Veterans Affairs loan
Source:
VA