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.

Get peace-of-mind on your home insurance

Homeowners insurance buys you peace of mind. But are you sure you’re not paying too much for home insurance?

SmartFinancial compares quotes from over 200 insurance companies to check for discounts and help you find lower rates in your area.

Use SmartFinancial right now and stop overpaying for home insurance.

About the Author

Katie Doyle

Katie Doyle

Former Editor

Katie Doyle was formerly an Editor with MoneyWise.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.