What is a VA mortgage? What is a VA loan?
A VA loan is a type of government guaranteed mortgage. VA loans are mortgages and home loans insured by the federal government, specifically, the mortgage product is insured by the US Department of Veterans Affairs (Veterans Administration). VA home loans are zero down mortgages that require no money down to purchase. In some transactions; (a) the buyer will not have to pay closing costs (in whole or part) (b); the buyer can receive cash back (equal to capital contribution).
VA home loans are available to:
- veterans
- active duty military
- discharged service members
- surviving spouses (some restrictions apply)
- and reservists (restrictions apply)
Credit is not a requirement for a VA loan. However, each VA loan is originated by a funder. Each funder may or may not have a credit score / history requirement. To be matched with a funder, click here for the VA home Loan application. In the event that you are interested in a Government insured mortgage but do not meet the VA military eligibility requirements, you may be interested in an FHA loan. For more information about government mortgage products, contact the VA home Loan Applications desk at 888-573-4496
- To avoid paying closing costs – If the purchase contract is structured properly, the buyer does not have to pay closing costs. Realtors and real estate agents referred to you by VA Home Loan Centers are not allowed to charge you for representation. Call 888-554-6846 for free guidance choosing an agent that specializes in VA buyer representation.
- To receive cash back, the buyer may apply for refunds, grants, and tax rebates. With some circumstances, the buyer may not collect equitable liquid enrichment greater than the value of the real estate or contribution.
- To apply for a tax rebate including first time home buyers tax credits, click here.
- To apply for Grants click here.
