VA Loan


A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs. The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses and can be used to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction. The VA does not originate loans, but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program.

VA Loan

What is ‘VA Loan’

A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. The Department of Veterans Affairs does not directly originate VA loans; instead, they establish the rules for those who may qualify, dictate the terms of the mortgages offered and insure VA loans against default.

Explaining ‘VA Loan’

VA loans offer up to 100% financing on the value of a home. To qualify for a VA loan, borrowers must present a certificate of eligibility, which establishes their record of military service, to the lender. VA loans, FHA loans and other loans insured by departments of the United States government are securitized by the Government National Mortgage Association (Ginnie Mae). These securities carry the guarantee against default of the Untied States government.

Further Reading

  • The country's economic growth models and the potential for budgetary, monetary and private financing of gross domestic product growth – [PDF]
  • FHA and VA mortgage discount points and housing prices – [PDF]
  • Cause and effect: government policies and the financial crisis – [PDF]
  • Socio‐Economics and the Probability of Loan Approval – [PDF]
  • The determinants of mortgage risk premiums: a case study of the portfolio of a savings and loan association – [PDF]
  • On the theory of financial contracting: The personal loan market – [PDF]
  • Monetary policy and credit conditions: Evidence from the composition of external finance – [PDF]