What is a VA loan?
A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). This loan is a specific loan program to help veterans, active-duty service members and their families purchase a home.
 

Although the VA Loan is a federal program, the government generally does not make direct loans to veterans. Instead, private lenders finance the loan while the Department of Veterans Affairs offers a guaranty to protect the lender against total loss should the borrower default on payments.
 

Benefits of a VA Loan?
• Zero to low down payment
• Fewer restrictions – you’re allowed a higher debt-to-income ratio and have more leniency with your credit score.
• If you have a service-related disability, you may qualify for waived funding fee, reducing closing costs. If not waived, there is an upfront fee of 2.30% of the purchase price of the home. This fee can be rolled into the financing as part of the loan amount.
• Borrowers can often refinance to a lower rate within the VA program without re-qualifying for the program.
• No Private Mortgage Insurance (PMI) – private mortgage insurance (or PMI) normally adds an additional 0.2-0.9% expense to your monthly mortgage payments when you put less than 20% down. With a VA loan, you’re not required to have PMI, saving you even more money on your home loan.
 

Through its distinct advantages over traditional mortgages, the VA Loan program has helped more than 20 million veterans and their families purchase a home since its inception in 1944.

How much can you qualify for?
In most parts of the country, veterans who qualify for the VA Loan can purchase a home worth up to $726,200 without putting any money down; however, with the 2023 VA Loan Limits, borrowers in high-cost counties may be able to purchase homes far exceeding that amount without a down payment.