What Is VA Loan?
VA Loan: A mortgage guaranteed by the Department of Veterans Affairs for eligible veterans and service members, with no down payment.
A VA loan is guaranteed by the U.S. Department of Veterans Affairs. It's available to eligible veterans, active-duty service members, National Guard and Reserve members, and some surviving spouses.
Key features
- No down payment for borrowers with full entitlement
- No monthly mortgage insurance
- VA funding fee instead, which can be financed and is waived for veterans receiving disability compensation
- Competitive rates, often lower than conventional
- Limits on fees the veteran can be charged
- Seller concessions up to 4%, plus normal closing costs
- Primary residences only, one to four units
Eligibility
You'll need a Certificate of Eligibility, based on length and type of service. VA has no minimum credit score, but lenders typically look for 580 to 620. Underwriting includes residual income.
Good to know
VA loans can be used more than once, and in some cases you can have two VA loans at the same time if you have remaining entitlement.