A mortgage loan made by an approved lender and guaranteed by the Department of Veterans Affairs. Also called VA loans, they are made available to veterans and current military personnel, and usually require a lower down payment than other types of loans.
For those who are in eligible, a Veteran’s Administration loan may be a great mortgage product. It differs somewhat from a standard mortgage. Although it is provided through a private lender, the federal government guarantees a portion of the principal with a VA loan. That means that the Department of Veterans Affairs guarantees the loan so the lender is protected if the borrower defaults. Also, those eligible for a Veteran’s Administration loan can have little or even no down payment and still receive the mortgage. This is the biggest advantage of a Veteran’s Administration loan.
Be sure to discuss with your lender the specific down payment requirements it has for getting a Veteran’s Administration loan.
There are certain criteria one must meet to obtain a Veteran’s Administration loan. Some are standard, as with any loan: good credit, enough funds for payments, etc. However, the Veteran’s Administration loan is only for eligible veterans, current members of the military, or their spouses in certain cases. To see a full list of eligibility requirements, visit the Department of Veterans Affairs website at www.homeloans.va.gov. This site also answers many specific questions about the program.
You will need a certificate of eligibility to show the lender if you request a Veteran’s Administration loan. You can get this certificate through the Department of Veterans Affairs. Once you show it to the lender, the lender can then help you obtain a VA loan.