What Can a VA Mortgage Do for You?
The VA home loan program was created in 1944 when the Servicemen’s Readjustment Act added a package of benefits to eligible service members. It is administered by the US Department of Veterans Affairs (VA). The VA does not actually lend money; it administers an insurance program, and that program reimburses VA mortgage lenders if borrowers fail to repay their VA home loans. Because this guaranty reduces the risk to lenders, VA loans are widely available to military borrowers at a reasonable cost. VA mortgage lenders offer a variety of home loans designed to meet many needs. You can:
- Buy or build a home.
- Buy a residential condominium unit
- Buy a residential cooperative housing unit.
- Repair, alter, or improve a residence owned by the veteran and occupied as a home.
- Refinance an existing home loan.
- Buy a manufactured home and/or lot.
- Install a solar heating or cooling system or other energy- efficient improvements.
VA home loans are great for eligible veterans (and their families, when applicable) who need to finance more than 80 percent of a home’s appraised value or purchase price. The best thing about VA mortgages is that mortgage insurance is not required.
“VA home loan guaranties are issued to help eligible servicemembers, veterans, reservists and certain unmarried surviving spouses obtain homes, condominiums, residential cooperative housing units, and manufactured homes, and to refinance loans. For additional information or to obtain VA loan guaranty forms, visit www.homeloans.va.gov.
Our VA pages provide answers to questions like these:
- What credit score do you need for an VA home loan?
- How do you shop for an VA mortgage?
- What are the down payment requirements? Can you use a gift or borrow your down payment?
- What does “assumable” mean and why it is so important?
- What ate the advantages and disadvantages of an VA loan?
- How much does an VA mortgage cost?
- How do you qualify for an VA mortgage?
- How can you use an VA loan to buy a home for a relative?
- Can you use the VA program if you’re not a US citizen?
- How can you use the VA loan to buy a manufactured (mobile) home?
- How do you use the VA loan to build or renovate a home?
- Can you buy a multi-unit property with VA? (Yes!)
- How do you use the VA program to buy a condo or co-op unit?
Understanding VA loans can help you make the right decision when you buy or refinance property.