VA guaranteed loans are provided by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In many cases, no down payment is required on a VA Guaranteed Loan and the borrower usually receives a lower interest rate than is ordinarily available with other loan programs. Veterans of the Armed Services, active duty, reservist or a spouse of a veteran are eligible.
No down payment option available.
Easier qualifying requirements.
Interest rates may be negotiable.
Closing costs are comparable and many times lower.
No private mortgage insurance is required.
Right to prepay loan without penalties.
Counseling and assistance is available to veteran borrowers having financial difficulty or facing default on their loan.