Guaranteed by the U.S. Department of Veteran Affairs, the VA loan program is designed to assist both current active duty military members and veterans achieve homeownership. Eligible borrowers for this program are allowed to borrow at a higher percentage of the home value and the loan is guaranteed by the government against default.
Active members of the military, veterans, and members of the National Guard are qualified to apply for VA loans. Spouses of service-connected disability or deceased military members may also apply for these types of loans.
There is no minimum down payment required and no monthly mortgage insurance payments. The minimum credit score required is as low as 500.
Keep in mind, when choosing to take out a VA loan, a one-time Funding Fee will still be required. The amount depends upon the size of the loan and the type of veteran applying. Even though VA loans generally have lesser costs than other types of loans, it is still good to keep this one-time fee in mind.