What You Need to Know about VA Loans

VA loans, which are provided by private lenders and guaranteed by the U.S. Department of Veterans Affairs, also known as VA, are available to certain veteran and active-duty service members and qualifying spouses (a complete list of eligible applicants is available on the VA Benefits website). In addition to meeting the lender’s credit history and debt-to-income requirements, you’ll need to obtain a Certificate of Eligibility to verify qualifications for the loan.


  • With 100% financing, qualified Homebuyers won’t need money for a down payment, as long as the loan amount doesn’t exceed the appraised value
  • VA loans don’t require private mortgage insurance, which can result in thousands of dollars in savings over the life of the loan
  • The VA limits the amount of closing costs and fees lenders can charge, so you’ll save on upfront costs


  • While there’s no limit to how much you can borrow with a VA loan, there is a limit to how much the VA will guarantee, and some lenders won’t approve a loan above the guaranteed amount
  • Most borrowers must pay a funding fee, a percentage of the loan based on a number of qualifications, such as loan type and military category, that can be paid in cash at closing or incorporated into their monthly payment
  • VA loans are only available on the purchase of owner-occupied properties, meaning they’re off-limits for vacation homes or income-generating homes

If you’re still wondering what the best fit is for your financial situation and future plans, talking to a lender is a great next step. And, you can also look back on our articles explaining more about FHA loans and conventional loans to discover other financing options that may work for you!