VA Home Loans

Does the Department of Veterans Affairs offer mortgage loans?

Question: I was recently discharged from active duty and looking into purchasing a house. Can Veterans Affairs (VA) provide me with a mortgage loan?

Answer: VA has a program titled Loan Guaranty. It does not give you an actual loan, but it does provide the following: 

This program is available to assist servicemembers, veterans, reservists, and certain surviving spouses. Loan Guaranty is to help protect lenders from loss if the eligible borrower (you) fails to repay the loan. This gives lenders an incentive to make loans, since it minimizes their risk of loss. 

It also lessens closing costs and can eliminate the need for mortgage insurance as well as for a down payment. 

The loan can be used to:

(1)  Buy or build a home

(2) Buy a residential condominium

(3) Buy a residential cooperative  housing unit

(4) Repair, alter or improve a home owned and occupied by the borrower

(5) Refinance an existing loan

(6) Buy a manufactured home and/or lot

(7) Install solar heating or cooling system or other energy-efficient improvements

 

For more information, visit pva.org or call the PVA Veterans Benefits Department, 800-424-8200.  

 

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