VA hub
How a VA loan works
A regular loan from a regular lender, with a government guarantee behind it.
Who does what
You apply with a lender, such as a bank, credit union or mortgage company. The lender makes the loan. The Department of Veterans Affairs guarantees part of it. If a borrower stops paying, the guarantee repays part of the lender's loss, not yours.
Why that helps a buyer
Because the lender is protected, it can lend with little or no down payment and without private mortgage insurance. Each lender still sets its own standards on top of the VA's.
Where the rules live
The VA publishes its rules for lenders in the Lenders Handbook, VA Pamphlet 26-7. You do not need to read all of it, but you can.
More VA topics
- Who may be eligibleThe VA decides, and it looks at service, not at a person's background.
- The Certificate of Eligibility (COE): a walk-throughThe COE is the VA's proof that you may use the home loan benefit. Most lenders ask for it. Here is how to get one.
- The funding feeA one-time cost that helps keep the VA loan program running.
- Down payment and entitlementTwo words that come up in every VA loan conversation.
- The VA appraisal and the homeThe VA looks at the house as well as the buyer.
Educational only. AskResi is not a lender.