VA Loan Definition
A VA loan is a mortgage loan product offered only to veterans, active military service members and their family members to purchase an owner-occupied real estate property. The U.S. Department of Veterans Affairs guarantees a portion of the loan.
A VA loan can be used to purchase, refinance, renovate or improve a single-family home, multi-family home, condominium, manufactured homes, or new constructions homes. Some of the major benefits are more competitive rates, no down payment requirement, and no Private Mortgage Insurance (PMI).
However, a VA loan does have a Funding Fee which is financed into the loan and the fee increases after the first use. Veterans or service members who receive disability are exempt from this Funding Fee.