Definition of term
A VA loan is a type of mortgage loan backed by the VA (Veterans Administration). VA loans are available to eligible veterans, active-duty service members, and certain reservists and National Guard members. Buyers can purchase a primary residence using VA loans, including a single-family home, a condominium, a townhome, or a manufactured home. Buyers can also refinance an existing home loan with a VA loan. VA loans offer several benefits, including no down payment, no monthly mortgage insurance premium, and lower interest rates. VA loans are available through VA-approved lenders, such as banks, credit unions, and mortgage companies.