What are VA Loans and how do they work?
• VA loans are guaranteed by the Dept of Veterans Affairs. The VA stands for Veterans Administration and as the name implies this is a benefit that is offered to Veterans, their spouses, and unremarried widows/widowers of veterans who died of service connected disabilities. No down payment is required. No PMI is required, although a guaranty fee is due to VA on most loans. Receipt of service connected disability payments usually provides an exemption. Unmarried partners may NOT receive this benefit unless that person is also a veteran. A certificate of eligibility is needed and the basic entitlement of $36,000 is the same for all–from buck private to 5 star general, from seaman to full admiral. A supplemental entitlement for the basic prgram will cover loans up to $417,000. Loans exceeding that amount are treated separately and have special guidelines. Eligibility does not mean approval. The veteran must still qualify with income and credit analysis. VA loans are assumable, too, which
