A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA). VA Home Loans are provided by private lenders, such as banks and mortgage companies. The VA guarantees a portion of the loan, enabling the lender to provide home buyers with more favorable terms.
VA Loan Pros:
Probably the biggest benefit to homebuyers is being able purchase a home with as little as $0 down and no mortgage insurance!
VA mortgage loans have less stringent credit requirements than conventional loans.
If the house is later sold, the loan can be transferred to the new buyer.
VA Loan Cons:
The buyer must pay an upfront "funding fee". Click here to see the fee percentages.