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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.

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2. Who are VA loans 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: Who is eligible for a VA home loan?

3. VA loan requirements

One benefit of a VA loan is that they do not require mortgage insurance.

What's more, they do not require a down payment.

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4. What about my credit score?

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. Costs of a VA loan

Yes, there is. There's an upfront funding fee that varies from 1.4% to 3.6% 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.

> Find out if you qualify for a VA loan with Veterans United Home Loans!

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About the Author

Katie Doyle

Katie Doyle

Former Editor

Katie Doyle was formerly an Editor with MoneyWise.

What to Read Next

It's a lengthy, complicated process, so just keep your eyes on the prize: your new home.

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.