These loans are guaranteed by the U.S. Department of Veterans Affairs (VA) and are designed to make homeownership more affordable for those who have served in the military. One of the most significant benefits of a VA loan is that it requires no down payment, making it a highly accessible option.
Additionally, VA loans typically do not require private mortgage insurance (PMI), which helps reduce monthly payments. They also offer competitive interest rates and flexible credit requirements, making them ideal for borrowers with varying financial profiles. However, borrowers are required to pay a one-time VA funding fee, which can vary based on the loan amount, down payment (if any), and whether the borrower has previously used their VA loan benefits.