What is a VA Loan?


va loan Homebuyers who served in the United States military may qualify for an attractive financing program. If you are an active duty service member, a retiree, a reservist or a veteran of any branch of the U.S. Armed Forces, you might qualify for government-backed financing. The Department of Veterans Affairs provides a loan guarantee for qualified individuals who have demonstrated honorable service.

About the VA

The VA provides vocational training, disability compensation and other services for qualified veterans. A variety of benefits are available through the Department of Veterans Affairs too. Eligible participants may qualify for healthcare services, medical benefits, prescriptions, life insurance, educational assistance and mortgage financing via a VA loan. The VA provides a guarantee that minimizes a lender’s loss in the event of a loan default.

Using a VA Loan

Prospective buyers can use a VA loan to purchase a home. If you already own a home, a VA loan could be used to refinance an existing mortgage. VA loans may be used to purchase an owner-occupied residential property. Real estate owned through the Department of Veterans Affairs may also be purchased with a VA loan. To apply for a VA loan, borrowers must obtain a Certificate of Eligibility from the Department of Veterans Affairs. Generally, mortgage lenders are able to contact the VA to inquire about a Certificate of Eligibility for a qualified applicant. The Certificate of Eligibility enables a bank or a mortgage lender to issue a government-back loan that is guaranteed through the VA.

Obtaining a VA Loan

Contact a VA-approved bank or mortgage lender to apply for a home loan. A loan officer will review your qualifications to determine if you are eligible for VA-insured financing. Typically, a loan officer will need to perform a credit check, verify your income and review your employment history. Final approval for a VA loan may be based on other requirements such as a qualifying credit score, a favorable debt-to-income ratio, a property appraisal, satisfactory title reports and your Certificate of Eligibility.


Procuring a VA loan could enable you to receive an attractive form of financing. Generally, VA loans provide more underwriting flexibility than other mortgage lending products. If you meet the eligibility conditions, you can finance your home with VA loan.

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