As a veteran, you gain access to a variety of benefits to assist with everything from your personal finances to medical care. The ability to secure a VA home loan is one of the top benefits. In short, a VA home loan is a mortgage product guaranteed by the United States Department of Veterans Affairs (VA).
Here’s what that means: the VA doesn’t originate loans itself, but instead guarantees the loans so that lenders can provide them to veterans with confidence. There’s a lot to learn about VA home loans, with every detail important to the process and your ability to secure the money needed to make your dream a reality. Here, we outline the top things veterans should know about VA home loans.
The Money Doesn’t Come From The VA
Thanks to the name, it’s easy to assume that a VA home loan comes from the United States Department of Veterans Affairs. While the VA plays a big part in the process, it doesn’t actually lend you the money.
Instead, the VA guarantees the loan, which takes the risk off the lender’s plate. They’re able to provide loans to veterans without the risk of the unknown should the borrower default for any reason.