VA Loans are loans specially designed for United States American veterans. Spouses of American veterans can qualify for a VA mortgage as long as they do not in the future remarry. This type of Loan is securitized by Ginnie Mae and backed by the United States Department of Veterans Affairs. Private lenders are encouraged to offer these loans. In the past, lenders were discouraged by the amount of paperwork required and by the amount of time it required to process a VA loan; today, the process is faster thanks to the advances in technology.
There are many benefits designed for American veterans under VA loans. One of the advantages of a VA loan is that it does not require the borrower to bring a down payment to the closing table. The days of 0% down payment are gone for traditional loans; however, for veterans this option still exists. Another benefit is that VA loans do not have a PMI or private mortgage insurance. This will benefit the borrower as more of the payment can be use to qualify him/her for a bigger loan. In addition, not having a down payment and a PMI amount can help borrowers save money and build up an emergency fund. Another benefit of these types of loans is that they have much lower interest rates so veterans can afford housing. Active duty members, National Guard, and reservists can also apply for a VA loan.