Definition
VA loans offer zero down payment, no mortgage insurance, no prepayment penalties, and government backing for military members and veterans. Interest rates are typically lower than conventional loans. The VA's guarantee reduces lender risk.
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VA loans offer significant advantages: zero down payment requirement, no mortgage insurance, no prepayment penalties, and the VA's guarantee reduces lender risk. Borrowers must have a VA Certificate of Eligibility. Interest rates are typically lower than conventional loans. VA loans are limited to primary residences.
Pro Tip
VA loans offer the best terms for eligible borrowers; even without down payments saved, you can buy without PMI costs.
Example
A veteran with a VA Certificate of Eligibility can purchase a $400,000 home with zero down payment and no PMI, financing the entire amount.