- A VA mortgage is a home loan guaranteed by the U.S. Department of Veterans Affairs (VA) for eligible veterans, active-duty military members, and surviving spouses.
- VA loans offer 100% financing, meaning no down payment is required for qualified borrowers.
- VA loans have no mortgage insurance requirement, which can save borrowers money on their monthly mortgage payments.
- VA loans have flexible underwriting standards, making them accessible to borrowers with less-than-perfect credit.
- VA loans have fixed or adjustable interest rates, and terms typically range from 15 to 30 years.
- VA loans have no prepayment penalty, which means borrowers can pay off the loan early without incurring any fees.
- VA loans can be used to purchase a primary residence, refinance an existing VA loan, or make improvements to an existing property.
- VA loans have limits on the amount that can be borrowed without a down payment, but the limits vary based on location and can change annually.
- VA loans require a VA funding fee, which is a one-time fee paid by the borrower at closing that helps fund the VA loan program.
- VA loans offer assistance to borrowers who experience financial hardship, including loan modification and foreclosure avoidance.
- VA loans offer counseling and support services to help veterans and active-duty military members navigate the homebuying process.
- VA loans may be assumable, meaning that a future buyer can take over the remaining balance of the loan.
- VA loans have additional benefits, such as no prepayment penalty, relaxed credit requirements, and the ability to finance the VA funding fee
Down Payment: None
Terms: 15, 20, 25, 30 years, fixed and ARMs
Credit Score: 600 minimum
Mortgage Insurance: No
Maximum Loan Limit: Yes, varies by county
VA LOAN DISCLAIMER
VA home loan purchases, have options for 0% down payment, No private mortgage Insurance requirements, competitive interest rates, with specific qualification requirements. VA Interest rate reduction loans (IRRRL) are only for Veterans who currently have a VA loan, current loan rate restrictions apply, and limits to recoupment of costs and fees apply. VA Cash-out Refinances are available for Veterans with or without current VA loans. Policies and guidelines may vary and are subject to the individual borrower(s) qualification. Program and Lender overlays apply.