VA loans

A VA loan is a type of government-insured loan, backed by the U.S. Department of Veterans Affairs (VA).

The VA offers specific guarantees to private lenders that handle VA loans. Because of these guarantees, lenders offer loans that typically feature no down payment to veterans, and they may have less stringent requirements than other loans.

highlights

For those who are eligible, VA loans are attractive because they don’t usually require a down payment. They also have lower interest rates than many other types of mortgage loans you can get for similar terms and they don’t have monthly mortgage insurance.

Although lenders set their own requirements for certain aspects of qualification, VA loans have more lenient credit requirements than many other mortgage programs. That means qualifying for one should be easier, even if you have a poor credit history or small down payment.

Not all who have served in the Armed Forces qualify for a VA loan. You must meet at least one of the following criteria to qualify:

• You’ve served 181 days of active service during peacetime.

• You’ve served 90 consecutive days of active service during wartime.

• You’ve served more than 6 years of service with the National Guard or Reserves or 90 days under Title 32 with at least 30 of those days being consecutive.

• You’re the spouse of a service member who lost their life in the line of duty or as the result of a service-connected disability. You generally cannot have remarried, although there are exceptions, as well as other requirements for a spouse getting a VA loan.