VA Loans for Veterans

If you are a military veteran, on active duty, a reservist or a military spouse, you may qualify for a very useful benefit: a Veterans Administration (VA) home loan. This guide offers an explanation of the VA home loan process, and instructions on how to submit an application. Read up on special topics and mortgage updates, and take advantage of these benefits.

Overview

If you want to take out a loan to help purchase or refinance a home, condominium or manufactured home, the VA can guarantee up to $242,000 of the total loan. That's much higher than you can get with most FHA home loans. Even better, you do not have to provide a down payment on the loan to the VA (although certain funding fees and closing costs apply).

With a VA guaranty, you get a mortgage with a competitive interest rate. The lender you borrow money from is protected against loss up to the amount of the guaranty if you fail to repay the loan, and you have the flexibility to purchase a great home.

Specifically, a VA home loan can be used to:

• Buy a home or residential condominium

• Build a home

• Repair, alter or improve a home

• Refinance an existing home loan

• Buy a manufactured home that is permanently affixed to a lot

• Install a solar heating or cooling system or other weatherization improvements

• Purchase and improve a home simultaneously with energy efficient improvements

• Refinance an existing VA loan to reduce the interest rate

• Refinance a manufactured home loan to acquire a lot

VA-guaranteed loans are made by private lenders (such as banks, savings & loans, or mortgage companies) to eligible veterans. The VA underwrites loans for the purchase of foreclosed homes originally financed by a VA loan (for more on this see HUD/VA Homes). To get a loan, a veteran must apply to a lender. If the loan is approved, the VA will guarantee a portion of it to the lender.