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VA loan is a mortgage loan program offered by the United States Department of Veteran Affairs. Learn more about it here.

What Is a VA Loan and How Does It Work?

VA loan is a mortgage loan program offered by the United States Department of Veteran Affairs. What this program does is that it sets the qualifying requirements and standards, dictates the terms of the mortgages offered, and guarantees a portion of the loan. One thing to note though to avoid confusion, it does not provide the financing for home purchase. VA home loans are available through private lenders such as banks and mortgage companies.

To make sure you have all the information you require before applying for this sort of mortgage, it’s a good idea to speak with an experienced lender or access online resources if you have VA loan questions and answers.

Those who can apply for this loan program are veterans, service members, and the families of the veterans and service members. Those who purchase a home with the help of VA loans can buy their house with little to no down payment. So basically, a VA loan is an assistance offered by the United States Department of Veteran Affairs to the veterans, service members, and their families. 

To help confirm your validation that you are eligible for this loan you can check out Service members Civil Relief Act Centralized Verification Service or SCRACVS. You can get military verification through SCRACVS. Their service is also helpful for other services that require military verification. This includes, default judgments, rental agreements, security deposits, evictions, credit card interest rates, mortgage interest rates, mortgage foreclosure, automobile leases, life and health insurance and more.

To those who are qualified for VA loans, they can also benefit from other housing related programs such as building, repairing or adapting a home. This program is not exclusive for first time home buyers. As long as you are qualified, you can apply. Qualified persons may also reuse the benefits and assign the loan to another qualifying person.

Here are some of the benefits that you can expect when you apply for a VA loan:

  • There is no down payment unless it is required by the lender. A down payment is only usually required if the purchase price is above the established property value.
  • There is no private mortgage insurance premium requirement.
  • Little to no closing costs as it may be paid by the seller.
  • The lender may not charge a prepayment penalty if the borrower pays off the loan early.


  • VA loans for home buying that helps veterans, service members, and their families purchase a home at a little interest rate and little to no down payment.
  • Cash-out refinance loans allow qualified people to borrow against home equity to pay off debt, fund school, or make improvements. This type of VA loan offers a new mortgage for a larger amount than the existing note and converts home equity into cash.
  • Interest rate reduction refinance loans or IRRLs help borrowers obtain a lower interest rate by refinancing an existing VA loan. This allows them to convert an ARM or adjustable rate mortgage to a fixed rate mortgage.
  • The Native American Direct Loan Program is focused on helping Native American veterans with their home purchase, construction, or improvement of homes.
  • Adapted housing grants are focused on helping veterans with service connected disabilities to purchase, build or adapt a home or modify or repair an existing home. You can get further information on
  • Reverse Mortgage Loans for VA veterans – If you are a veteran age 62+ visit Here Are the Best Reverse Mortgage Options for Veterans for eligibility, rates and more.

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