A VA-backed home loan is made by a private lender and partially guaranteed by the U.S. Department of Veterans Affairs for eligible borrowers.
Potential No-Down-Payment Financing
VA purchase financing can permit eligible borrowers to buy with no down payment when program requirements are satisfied and the financing fits the property’s value.
No Monthly PMI
VA loans do not use monthly private mortgage insurance in the same manner as conventional financing. Many borrowers instead pay a VA funding fee, although exemptions may apply.
Eligibility Is Not Approval
- Income requirements
- Credit requirements
- Residual income
- Occupancy
- Property requirements
- Lender underwriting
VA Appraisal vs. Inspection
A VA appraisal is not a substitute for an independent home inspection. The appraisal serves valuation and VA property-requirement purposes, while the inspection helps the buyer evaluate physical condition.
Homebuyer takeaway: Eligible borrowers should include VA in the financing comparison, but evaluate the complete structure rather than focusing only on zero down.
Sources
VA Home Loans
VA Purchase Loans