Since 1944, the Veterans Administration has offered federally guaranteed home mortgages to eligible veterans. To be eligible for a “VA” loan you must have suitable credit, sufficient income, and a valid Certificate of Eligibility. You can apply for the certificate online at the website of the U.S. Department of Veterans Affairs. The website also has detailed information on other eligibility requirements.
VA Home Loans are provided by private lenders, such as banks and mortgage companies. Since the government subsidizes the VA loan, it provides the veteran with a variety of benefits. For example, Veterans can borrow up to $417,000 without a down payment in most of the country. VA loans also typically come with easier loan qualification standards… they don’t require mortgage insurance… and the VA limits certain closing costs a veteran can pay.
A VA-guaranteed loan can be used to buy a home as a primary residence – or to refinance an existing loan.