A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA).  And it may be exactly what you or a military family you love needs. Basically, it’s a loan given by private lenders, but instead of having to pay a large down payment and/or mortgage insurance, the lender is protected by the VA should there be any inability to pay your mortgage.  Here’s a couple benefits of a VA loan…

Benefits of a VA Loan:

  • No down payment.  The need for a down payment is eliminated, while most loans require at least 5% down, and 20% or more down to avoid loan insurance.
  • No mortgage insurance.  The VA’s guarantee eliminates the need to pay for mortgage insurance, which will lower your monthly costs. Usually you have to pay this until you have paid off 20% of your mortgage loan.
  • No prepayment penalty.  Some loans have fees you incur if you try to pay a loan off early, but not with the VA loan.  You can save a lot on interest simply by paying a little bit extra toward your mortgage each month, with no penalty.
  • Competitive interest rate.  When you look at the mortgage landscape, VA loans have steadily had the lowest average interest rate of all types of home loans.

Things You Should Know:

  • VA loans are for primary residences only. That means no secondary vacation homes or businesses.
  • They’re not issued by the VA.  They are guaranteed by the government, but you get a VA loan directly from a lender. The agency typically guarantees up to a quarter of your loan, giving the lender confidence to give you a mortgage with great rates.
  • There is a VA Funding Fee. This guarantees that the program will be able to run and protect our military homebuyers for generations to come. The fee can be rolled into the loan or paid up front, and there are exemptions from the fee for some, including those who are paid compensation for service-connected disabilities.


Most members of the military are eligible to apply for a VA loan, generally after 6 months of service.  If you fit that description, you can see the remaining requirements here. And for those who know the true meaning of Memorial Day… The spouses of military members who gave their lives in active duty are also eligible to apply.

Feel free to pass on this quick guide to a military family you love – or call us!  We’re a Christian Mortgage Lender that participates in the VA program, and we’d be honored to help you apply.


All our best,


The Christian Mortgage Mom