va-loans

About Home Loans

VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.

VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.


VA Home Loan Advantages

The guarantee VA provides to lenders allows them to provide you with more favorable terms, including:

  • No down payment as long as the sales price doesn’t exceed the appraised value.
  • No private mortgage insurance premium requirement.
  • VA rules limit the amount you can be charged for closing costs.
  • Closing costs may be paid by the seller.
  • The lender can’t charge you a penalty fee if you pay the loan off early.
  • VA may be able to provide you some assistance if you run into difficulty making payments.

You should also know that:

  • You don’t have to be a first-time homebuyer.
  • You can reuse the benefit.
  • VA-backed loans are assumable, as long as the person assuming the loan qualifies.

Homeowners’ Associations (HOAS)

When financing a home, a borrower should consider that in addition to the monthly mortgage payment, there may be HOA dues. These dues may cover a variety of services available in the neighborhood. The borrower should be sure to request and read the HOA documents and the financial status of the HOA.

Seller Contributions
Seller contributions are allowed with VA Loans. While buyers are negotiating the final sales price, they should also consider negotiating the seller contribution to help pay for closing costs.