It works differently than your other typical loans in the sense that the VA does not actually issue the loan. Instead, they agree to repay a portion of each guaranteed loan should the person borrowing default.
VA loans do not require a down payment, similar to the USDA loan. This loan type also does not have as strict lending requirement that conventional loans do as the vast majority of people who get a VA loan could not be approved for a conventional mortgage.
Not everyone can obtain a VA loan, though. Military members and veterans who meet specific criteria are eligible to apply for a VA loan in addition to the spouses of the ones who were killed in action. A Certificate of Eligibility is required (a document that can be obtained online), and there is no limit to how much a VA loan can be.
This type of loan is ideal for veterans who have served who may have lower incomes and low-to-moderate credit score.
If you are a current member of the military or a veteran and think that a VA loan could be right for you, contact our team today to see if it’s a good fit for you and your family!