What Is a VA Loan?
A VA loan is made by a private lender and backed in part by the U.S. Department of Veterans Affairs. It is available to eligible service members, veterans, and certain surviving spouses who meet VA service requirements and the lender’s credit and income standards.
Qualified buyers may be able to finance a primary residence without a down payment when the purchase price and appraised value support the transaction. VA loans also do not require monthly private mortgage insurance.
Eligibility and Entitlement
A Certificate of Eligibility confirms that the borrower meets the service-related eligibility requirement, but it is not a loan approval. The lender still reviews income, credit, debts, residual income, assets, and the property.
Available entitlement can affect the amount that may be financed without a down payment. Borrowers who have used a VA loan before may still have remaining entitlement or may be able to restore it after meeting applicable requirements.
Fees and Property Requirements
Many borrowers pay a one-time VA funding fee, although exemptions exist for some eligible borrowers. The home must generally be occupied as a primary residence and satisfy VA appraisal and minimum property requirements.
VA also offers specific refinance paths. Each option has its own eligibility, benefit, seasoning, and documentation rules, so the correct structure should be reviewed with a VA-experienced mortgage professional.