A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs (VA). The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses (provided they do not remarry) and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction.
The VA does not originate loans, but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program. The basic intention of the VA home loan program is to supply home financing to eligible veterans and to help veterans purchase properties with no down payment. VA loan guidelines are currently as follows:
MAXIMUM LOAN AMOUNT
100% FINANCING TO QUALIFIED VETERANS
15, 25, OR 30 YEARS
29% HOUSING / 41% TOTAL DEBT
(or higher with Underwriting approval)
UP TO 6% OF SALES PRICE