1. What is a VA loan?

A VA loan is another term for a Veterans Affairs mortgage. The loans are made through private lenders and are guaranteed by the Department of Veterans Affairs, so they do not require mortgage insurance.

Find A Lender: Check Your Eligibility With Veterans United Home Loans.

2. Who are they for?

  • Are you an active-duty member of the military or a veteran? You most likely qualify.
  • National Guard and reservists are also eligible.
  • Spouses of military members can be eligible, but there are several caveats.

More: Details about eligibility requirements for VA home loans.

3. Any other fun facts?

Not only do VA loans not require mortgage insurance, they also do not require a down payment.

4. Why didn't you say that first?

Great point. Sorry about that. VA loans do not require down payments, which makes them hard to beat if you qualify. And even more great news? There's no minimum credit score requirement.

5. But there's still a cost, right?

Yes, there is. There's an upfront funding fee that varies from 1.25% to 3.3% of the loan amount, and it can be rolled into the loan. And as with other mortgages, closing costs will need to be paid. But, both of these costs will be significantly less than a down payment.

Bottom line

For those who qualify, VA loans offer the ability to finance 100% of the loan amount at low rates.

NEXT STEP: The best way to find out if you qualify for a VA Home Loan is to check your eligibility with Veterans United Home Loans.

About the Author

Katie Doyle

Katie Doyle

Editor

Editor

You May Also Like

Capital One Shopping vs. Honey — Which One Saves You More?

These similar-looking services provided totally different results in our test run.

Sprucing Up Your Home? Don't Decorate Without This Money-Saving Secret

This 30-second trick can save you a surprising sum on any big project.

This Online Shopping Tool Actually Rewards You for Buying Local

Here's how to save money while supporting your community at the same time.

Here's the Trick to Getting a Tricked-Out Home Office on a Budget

With remote work here to stay, it's worth investing a few bucks in your space.