A VA loan is a mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs (VA) and provided by qualified lenders. The VA mortgage loan was designed to offer long-term financing to eligible veterans or their surviving spouses. The basic intention of the VA direct home loan program is to supply home financing to eligible veterans and provide them the option to purchase property with no down payment. The VA mortgage loan allows veterans 100% financing without private mortgage insurance. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA; this fee may also be financed into the loan.
