What is a VA loan and what are its benefits for veterans?

A Veterans Affairs, or VA, loan is a mortgage guaranteed by the Department of Veterans Affairs for eligible veterans, active-duty service members, and surviving spouses. VA loans offer several advantages: no down payment required, no private mortgage insurance, competitive interest rates, and limits on closing costs. The VA does not lend money directly but guarantees a portion of the loan, reducing risk for lenders. Borrowers need a Certificate of Eligibility and must meet income and credit requirements.