The VA Loan is a $0 down mortgage option available to Veterans, Service Members and select military spouses. VA loans are issued by private lenders, such as a mortgage company or bank, and guaranteed by the U.S. Department of Veterans Affairs (VA).

Today, the VA Mortgage is more important than ever. In recent years, lenders nationwide have tightened their lending requirements in the wake of the housing market collapse, making the VA Loan a lifeline for Veterans and active Military home buyers, many of whom find difficulty when faced with tough credit standards and down payment requirements.

Key Points

• VA Loansare among the last 0% down home loans available on the market today.
• Since VA Loansare government backed, banks do not require you to buy Private Mortgage Insurance.
• The VA guaranty gives lenders a greater degree of safety and flexibility, which typically means a more competitive rate than non-VA loans.
• Because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA Loans, making them easier to obtain.

Qualified veterans with their full VA Loan entitlement can borrow as much as a lender is willing to extend, all without a down payment. The VA Loan limits only come into play for buyers with less than their full entitlement, either because they have one or more active VA Loans or because they’ve lost a previous one to foreclosure.