What is a VA Loan?

The VA loan program was originated and passed by the United States Congress in 1944. It is a mortgage loan created specifically for eligible military veterans, service members, and their spouses. It’s issued through private lenders but is guaranteed by the Department of Veterans Affairs (VA). It is a great program for those who qualify!

A VA loan offers veterans loan rates that are lower than traditional mortgages. They can also allow veterans to borrow up to 100% of the property’s value. That means NO down payment! This is a huge benefit of a VA loan since most mortgage programs require 3%-5% as a down payment. Flexible income requirements and low credit score requirements are also a perk. The VA additionally does not require the buyer to pay any type of mortgage insurance upfront or within their payment. That means the buyer could afford a more expensive house (than going with another loan and paying the minimal down payment) for the same monthly payment because the MI was eliminated.

Most veterans, active military, reservists, and National Guard are eligible to apply for a VA loan. Also, spouses of military members who died while on active duty or suffer a service-connected disability can apply. Once you have earned eligibility for the VA home loan, it never goes away! People who served even decades ago are still eligible even if they have never used the benefit previously. To check your eligibility, contact a VA-approved lender (I always recommend contacting a local lender!) and they can request your certificate of eligibility, or you can do it on the VA’s eBenefits website.