A VA mortgage is home loan is guaranteed by the U.S. Veterans Administration and available to eligible military veterans. Because the VA guaranty assures repayment of a portion of the loan in the event the borrower defaults, it provides an incentive for lenders to loan money to veterans at favorable terms for the purchase, construction or refinance of a home.

VA loan benefits include:

• No down payment unless the purchase price is higher than the VA-appraised value of the home.
• No mortgage insurance premiums
• VA mortgages are assumable (transferable) to non-veteran individuals with approved credit.
• No penalty for early repayment.