A VA loan is a mortgage loan guaranteed by the Veterans Administration. It was created in 1944 and signed into law by President Franklin D. Roosevelt. A VA loan provides veterans and/or their surviving spouses who have not remarried, with a federally guaranteed home with zero down payment. The program has been highly successful and has helped millions of American veterans and their families acquire a home.
- No down payment
- VA does not require private MIP
- Limit on the amount of origination fees and closing costs that the lender can charge
- Limit also placed on appraisal fees
- Borrower with eligibility remaining must have a Certificate of Eligibility from the VA
- Closing costs can be paid by the lender and the seller.
- Borrowers are required to make a one-time funding fee based on loan amount and applicant’s service length.