What Is VA Loan?
A mortgage guaranteed by the Department of Veterans Affairs, available to active military, veterans, and some spouses.
Definition
VA loans are guaranteed by the Department of Veterans Affairs and offered through private lenders. They are one of the best benefits of US military service: 0% down payment, no PMI, competitive rates, and no minimum credit score set by the VA (lenders typically want 580-620+). The catch is a one-time VA funding fee (1.25% to 3.3% of the loan, can be rolled in). VA loans can only be used for a primary residence.
Example
A veteran buying a $400,000 home with 0% down and 2.15% funding fee pays $0 cash down + $8,600 funding fee (financed).
Use It
Try the Mortgage CalculatorRelated Terms
FHA LoanA government-insured mortgage with low down payment (3.5%) and easier credit requirements.Conventional LoanA mortgage not backed by the federal government, conforming to Fannie Mae or Freddie Mac guidelines.Down PaymentThe cash you pay upfront when buying a home, separate from the mortgage loan amount.