How Do VA Home Loans Work?

A VA home loan is provided to US military veterans and is guaranteed by the Department of Veterans Affairs. These loans are also available for the widows or widowers who have not remarried and the spouses of the veterans and active military personnel.

However, partners who are not married to the veterans cannot benefit from this type of loan unless they are also veterans or active military personnel. The primary advantage is that the borrower does not have to pay private mortgage insurance (PMI) and down payment.

The primary purpose of the VA home loan is to offer home financing to veterans and active-duty military personnel in areas where there is insufficient or no private financing service. These areas are usually rural areas and small towns or cities are far from the big cities. Read more