Real Estate Finance

VA Loan

A government-GUARANTEED mortgage available to eligible veterans, active-duty military, and certain spouses, with no required down payment.


Definition

A VA loan is GUARANTEED (not made) by the Department of Veterans Affairs. Eligible veterans, active-duty service members, National Guard, Reserves, and certain surviving spouses can obtain VA financing through approved lenders. VA loans permit 100% LTV (no down payment required), have no PMI requirement (a one-time funding fee applies instead), and feature competitive rates. The VA charges a funding fee that varies based on down payment, type of service, and whether it is a first-time or subsequent VA use.

Exam Tip

GUARANTEED by VA, not made by it. Eligible veterans and active-duty military. 100% LTV. No PMI but a funding fee applies.

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