A VA loan, or Veterans Affairs loan, is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). VA loans are available to eligible veterans, active-duty military members, and certain surviving spouses. Unlike conventional loans, VA loans do not require a down payment or private mortgage insurance (PMI). PMI is a type of insurance that protects the lender in the event that the borrower defaults on the loan. Because VA loans do not require PMI, they can be a good option for borrowers who have limited funds for a down payment or who have a lower credit score.
VA loans have been an important part of the U.S. housing market since the 1940s. They have helped millions of veterans and military members purchase homes. VA loans are also an important tool for promoting affordable housing for veterans and their families.