A VA loan is a mortgage program backed by the U.S. Department of Veterans Affairs and designed to help eligible servicemembers, veterans, and their families buy or refinance a home. The VA sets the rules and guarantees a portion of the loan, which reduces risk for lenders and allows for more flexible terms. While the loans are issued, underwritten, and serviced by private lenders, the VA guarantee helps make homeownership more accessible—often with no down payment and no private mortgage insurance.

The biggest advantages of VA loans include 100% financing in many cases, no monthly Private Mortgage Insurance, limits on closing costs, flexible credit guidelines, and the ability to prepay without penalty. VA loans can be used more than once with sufficient entitlement and are available for many property types, including single-family homes, condos, manufactured homes, and new construction, as long as the home is a primary residence. Borrowers typically pay a one-time VA funding fee, though it can be rolled into the loan.

Eligibility is available to active-duty service members, veterans, certain National Guard and Reserve members, and eligible surviving spouses who meet service requirements. Borrowers must obtain a Certificate of Eligibility (COE), which confirms the VA’s backing of the loan. While the program is forgiving compared to many loan options, applicants still go through standard underwriting to confirm their ability to repay, just like any other mortgage.