A home loan through the U.S. Department of Veterans Affairs, called a VA loan, can be a great way to get a low-cost mortgage if you qualify as a military service member, veteran or their surviving ...

A VA loan or mortgage refinance is a home loan product backed by the Department of Veterans Affairs (VA). It lets you swap your current loan for a new one, but with different terms.

Why we chose it: Fairway Independent Mortgage ’s presence in 48 out of 50 U.S. states makes it our top pick for in-person mortgage loan servicing.

There is no mortgage insurance on VA loans – Mortgage insurance tacks on a significant upfront cost for borrowers with FHA loans — 1.75 percent of the loan amount.

The VA doesn’t have any loan requirements for credit score, though the individual lenders might set their own minimum. Homebuyers will also need a debt-to-income ratio (DTI) below 41%.

The VA will own mortgages itself and will offer vets who qualify a modified home loan with a 2.5% interest rate. But not everybody who got hurt is going to qualify.

MYTH: A VA loan can only be accessed once. REALITY: The VA benefit can be used again and again — it doesn’t expire.

Published on May 11, 2024. Updated August 7, 2024 4 min. read ...