What a VA loan is
VA loans are originated by private lenders and partially guaranteed by the U.S. Department of Veterans Affairs. The guaranty allows lenders to offer terms that may differ from conventional financing for eligible service members, veterans, and qualifying spouses.
Common features
VA loans may not require a down payment for eligible borrowers, and they generally do not require private mortgage insurance because of the VA's guaranty. There is, however, a one-time funding fee in most cases — covered in a separate article.
Loan amounts, rates, and qualification still depend on lender review and current VA guidelines.
Eligibility basics
Eligibility depends on service history and specific VA criteria. A Certificate of Eligibility (COE) is typically required and can be requested through the VA or with help from a lender.
- VA loans are backed by the VA but issued by private lenders.
- Down payment and PMI requirements often differ from conventional loans.
- A Certificate of Eligibility is generally required.
- Final approval still depends on lender review.
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