What is a VA Loan?

Are you an active-duty military personnel, reservist, veteran or surviving spouse? Then your Personal Mortgage Advisor may tell you that you qualify under the Department of Veterans Affairs VA loan program. While the VA doesn’t lend directly to borrowers, it does create a market for military personnel by insuring lenders such as Nations Lending against loan defaults made to qualified borrowers. The benefits extended to veterans under this program include: a no down payment required option, negotiable interest rates, the ability to finance the VA funding fee (which is a premium based upon the borrower’s initial down payment), compatible closing cost, and no mortgage insurance premiums.


The VA does not set a maximum loan size cap, however, there are limits on the amount of liability the VA will assume under the program; this usually affects the amount of money an institution will lend the borrower. Veterans, or surviving spouses, may apply for a loan under this program but will need a Certificate of Eligibility from the VA. This certificate proves to the lender that the borrower is eligible for the VA loan. Be sure to talk to your Personal Mortgage Advisor.