What is a VA loan and who is eligible?

A VA loan is a mortgage benefit for eligible veterans, active-duty service members, and surviving spouses, guaranteed by the Department of Veterans Affairs. VA loans offer zero down payment, no private mortgage insurance, competitive interest rates, and more flexible credit requirements. The VA does not set a minimum credit score, but most lenders require 620 or higher. A VA funding fee (0.5%–3.3% depending on down payment and usage) applies unless the borrower has a service-connected disability. VA loans can only be used for a primary residence and require the property to meet VA minimum property standards.