What Is a VA Loan? Complete List of VA Benefits

What is a VA Loan

The VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA), issued by participating approved lenders. This program is for American veterans, military members currently serving, reservists and select surviving spouses. The VA itself does not originate loans, but it does set the rules for who may qualify, and it establishes minimum guidelines and requirements for the home loan program. The VA home loan program provides financing for eligible veterans and helps veterans purchase properties with no down payment. Since the creation of the program, 20 million VA home loans have been insured by the government.

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Our Popular Home Loan Program

The VA Loan program offers tremendous benefits for Veterans, active service members, and their families.
The VA home loan program offers:

0% Down

A VA loan is truly a no-money-down home program, you can finance up to 100% of the purchase price using a VA loan


VA loans require neither a down payment nor mortgage insurance.

Lifetime Benefit

VA loan financing can be utilized repeatedly throughout an eligible Veteran or active service member's life.

Lower Closing Costs

Limitations regarding what fees and costs a veteran can pay at closing further contribute to the affordability of the VA loan.

Assumable Mortgage

The VA loan is assumable in some cases. This means, with VA/lender approval, you can transfer your VA loan to a future homebuyer (civilian or military).

No Prepayment Penalty

VA borrowers may opt to pay off their VA loan early without fear of financial repercussions such as a prepayment penalty.

Purchase a Place You Will Love to Live

Why Choose a VA Loan

One of the best aspects of the VA loan program is that it guarantees qualified borrowers won’t need to make a down payment, which can make initial costs lower when choosing a home. VA qualified borrowers will be able to obtain a VA loan for up to $1,200,000 in most areas of the country before needing to put any money down, compared to conventional loans, where a 3% down payment may be required. Conventional borrowers who can’t afford at least a 20% down payment often have to pay for private mortgage insurance (PMI), an expense that can add up quickly. With a VA loan, the upfront costs from down payments and mortgage insurance can be eliminated for qualified buyers. Most VA buyers do, however, pay an upfront funding fee that they can choose to roll into the loan. This funding fee is paid to the VA, and it helps to keep the VA loan program running.

Additional Benefits

In addition to no down payment, with a VA loan there is no prepayment penalty. Homeowners have the option to pay off most or all of the loan before the repayment period is over without penalty. Refinancing without re-qualifying is also a large benefit. With most other home loans, you will need to repeat the qualification process in order the refinance your home loan. With a VA loan, there is no re-qualifying.

Questions about your eligibility?

Contact one of our dedicated VA loan specialists about your unique situation and home loan goals. Call 1 (888) 232-1428 to get started!