VA Loans

The United States Department of Veterans Affairs (VA) guaranty a mortgage loan call VA Home Loan. The program is for American veterans, military members currently serving in the U.S. military, reservists and select surviving spouses (provided they do not remarry). Veteran uses this loan to purchase single-family homes, condominiums, multi-unit properties, manufactured homes and new construction.

The basic intention of the VA home loan program is to supply home financing to eligible veterans and to help veterans purchase properties with no down payment. Qualified mortgage lenders issue these loans. 

The original Servicemen’s Readjustment Act, passed by the United States Congress in 1944, extended a wide variety of benefits to eligible veterans. The VA loan guarantee program was especially important to veterans. Under the law, as amended & authorized, the VA guarantee or insure the home, farm, and business loans made to veterans by lending institutions. Over the history of the program, 20 million VA home loans have been insured by the government.

VA Home Loans for Veterans

The VA loan allows veterans 103.3 percent financing without private mortgage insurance (PMI). A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA; finance this fee, and some may qualify for an exemption. In a purchase, veterans may borrow up to 103.3% of the sales price or reasonable value of the home, whichever is less. Since there is no monthly PMI, more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment.

In a refinance, after new VA loan approval, veterans may borrow up to 100% of a property’s reasonable value, where allowed by state laws. In a refinance where the loan is a VA loan refinancing to VA loan (IRRRL Refinance), the veteran may borrow up to 100.5% of the total loan amount. The additional .5% is the funding fee for a VA Interest Rate Reduction Refinance.

Veterans Administration created a Mortgage loan design to help Veterans, service members, and their survivors. This mortgage loan help to buy, build, improve, or refinance a home.

The VA does not originate loans but sets the rules for who may qualify, issues minimum guidelines and requirements under which mortgages may be offered and financially guarantees loans that qualify under the program.

You’ll still need to meet the required credit and income requirements for the loan amount you want to borrow. But a Veteran’s home loan may offer better terms than with a traditional loan from a private bank, mortgage company, or credit union. For example, nearly 90% of VA loans are made with no down payment. 


Purchase loan

Looking to buy a home? Find out if you’re eligible for a VA purchase loan to get better terms than with a private-lender loan.

Native American Direct Loan (NADL) program

Are you a Native American Veteran or a Veteran married to a Native American? Find out if you’re eligible for a NADL to buy, build, or improve a home on federal trust land.

Interest Rate Reduction Refinance Loan (IRRRL)

Have an existing VA home loan? Find out if you’re eligible for a VA IRRRL to help reduce your monthly payments or make them more stable.

Cash-out refinance loan

Want to take cash out of your home equity to pay off debt, pay for school, or take care of other needs? Find out if you’re eligible for a VA cash-out to refinance loan.

Let us show you the benefits of a VA loan to Purchase a multi-unit residential Property

At MutualMTG, we have expert realtors and loan officers that know the ins and outs of any loan. We believe in helping Veterans use real estate to invest in your future. Let us guide you in your wealth-building process, call us for a free mortgage consultation today.