A VA home loan is a loan available exclusively to Qualified Veterans, active duty personnel, Reservists/National Guard members and some surviving spouses. Qualified Veterans are those who meet specific criteria set by the US Department of Veterans Affairs. These criteria include length of service depending on the dates of service. For example, if you are currently on active duty, you are eligible after having served 181 days.
You can see the full list of eligibility criteria here.
Benefits of VA financing include:
- No money down (VS 3.5% for FHA Loan)
- Competitive interest rates
- Seller can pay up to 4% of purchase price, usually in closing costs
- No PMI, instead there is a one-time VA funding fee rolled into the cost of the loan
To utilize VA financing, you must first
apply online with the US Department of Veterans Affairs.
