A VA loan is a type of mortgage that is guaranteed by the U.S. Department of Veterans Affairs (VA) and is available to qualified borrowers as part of their military benefits. VA home loans are provided by private lenders such as banks and mortgage companies, and the VA guarantees a portion of the loan, enabling the lender to provide more favorable terms. VA loans offer more lenient requirements than conventional loans and typically have lower interest rates and lower closing costs.

To be eligible for a VA loan, you must be a veteran, active-duty service member, or eligible surviving spouse. You must also have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility (COE). VA loans can be used to purchase a single-family home, condominium, multi-unit property, manufactured house, or new construction.

The VA offers several types of home loan programs, including VA direct loans and three VA-backed loans. With a VA direct home loan, the VA serves as your mortgage lender, and you work directly with them to apply for and manage your loan. With a VA-backed home loan, the VA guarantees a portion of the loan you get from a private lender, which allows the lender to give you better loan terms.

To apply for a VA loan, you need to follow several steps, including applying for your COE, looking at your current finances, finding a lender, and preparing to pay lender fees. VA loans are a powerful loan option on the market, and every veteran buyers situation is different, so its essential to go over all of your loan options with a home loan specialist to ensure you get the best loan for your needs.