With a VA home loan, service members can borrow money from a civilian lending source, such as a bank, credit union or mortgage company. These loans differ from conventional loans in that:
- The VA guarantees the lending source payment of the loan, if you default
- The fees you have to pay at closing are reduced
- The amount of your down payment is often reduced
- You may be able to qualify to borrow more money, enabling you to buy a larger home
- You may qualify for a lower interest rate
- You don't have to buy private mortgage insurance
Besides purchasing a home, condominium, townhouse, you can also use a VA home loan to:
- Refinance a current VA home loan for a lower interest rate or to take out equity
- Build a new home
- Remodel, or repair an existing home
