What Is a VA Loan?

It's a home loan with no required down payment and favorable loan terms for Active Duty Service members, Veterans, Reservists, National Guard members, surviving spouses, and certain other individuals who meet eligibility requirements can use VA loans to purchase homes or refinance existing mortgages. VA loans are guaranteed by the Department of Veterans Affairs.

VA loans are one of the only mortgages to offer 100% financing (no down payment) for a home purchase. In addition, VA loans offer refinance and cash out options that can be used to pay off debt, fund major expenses, make home improvements, or refinance a non-VA home loan into a VA home loan with improved terms.

There is also a streamlined option known as an Interest Rate Reduction Refinance Loan (IRRRL) that provides veterans with existing VA loans an opportunity to quickly and easily refinance an existing VA loan. Underwriting terms are very relaxed on an IRRRL an they allow veterans or active duty to quickly and easily pursue a refinance when market conditions improve and interest rates drop.