How Do VA Mortgage Loans Work?
A VA Loan is a type of loan guaranteed by the U.S. Department of Veteran Affairs. This type of loan isn’t directly made by the government, but the fact that it is backed by a government agency gives a lot of confidence to the lender and the applicant.
As a result, it is possible to receive a VA loan without a down payment and with often fewer collateral requirements, while you still need to meet certain conditions, and the lender still needs to approve you, if you qualify for this type of loan, it will definitely help you get the house of your dreams.
VA loans work a little differently than traditional mortgages. The Department of Veterans Affairs (VA) does not make or originate loans. Still, it guarantees a portion of each loan against default. This backup, or guarantee, gives private lenders the confidence to extend $0 down funding and favorable rates and conditions.