A VA loan is a mortgage loan available through a program established by the U.S. Department of Veterans Affairs (VA). With the help of VA loans, veterans, service members, and their surviving spouses can buy homes with little to no down payment or private mortgage insurance and normally get a competitive interest rate.

The VA does not issue VA loans, but they do determine who qualifies for one and which lenders issue them. There are several VA loans, and they pose less risk to lenders because a government agency backs them.

VA mortgages are considered non-conforming loans because they don't satisfy the policies of conventional lenders Fannie Mae and Freddie Mac. However, this permits more flexibility for clients to qualify because of their easier credit score prerequisites. In addition, they offer many advantages over conventional loans, including lower interest rates, more lenient borrowing needs, and no down payment due at closing. VA loans also never have monthly mortgage insurance.

VA loans are arguably the most potent loan option on the market. They come with big-time benefits, including a $0 down payment, no mortgage insurance, flexible and forgiving credit guidelines, and the industry's lowest average fixed interest rates. However, every Veteran buyer's situation is different, and going over your loan options with a home loan specialist can help ensure you make the best financial decision possible.

VA loans help Veterans and service members become homeowners without spending years building great credit or saving for a significant down payment. They've been a lifeline for younger homebuyers in particular. This hard-earned benefit program continues to fulfill its original mission nearly eight decades after its creation.