VA Loan Program: Home Mortgage Overview

VA Loan Program Home Mortgage Overview

VA Loan Program: Home Mortgage Overview

The VA Loan Program has assisted over 20 million veterans and their families in obtaining a home mortgage since its inception in 1944. Created to aid military members in receiving affordable lending to purchase a home after returning from service, VA home loans are guaranteed by the federal government and financed by private lenders throughout the country.

The housing market has been in trouble in recent years and as a result, lenders have made it difficult for many Americans to receive home financing. This has hit American service members along with the rest of the country, many of whom have recently returned home from service and may be experiencing credit issues and difficulties securing a down payment. As a result, the VA Loan Program has been instrumental in helping these service members and others purchase homes for their families.

Walking you through the process

At Veterans Anonymous, we have put together a comprehensive guide for service members who are applying or thinking of applying for a VA Home Loan. There are several differences between VA Loans and traditional home mortgages. As with any new financial benefit, there is a lot of information you’ll need to educate yourself on. Read through our guide and feel free to reach out to us at any time if you have questions. We want your experience securing a VA home mortgage to be as simple as possible.

Is there a limit to how much financing you may receive?


The standard limit in place on a VA home loan is $417,000. However, if you are buying a home in a county with high-costs, you may qualify to borrower more than the limit. Visit our guide to high-cost counties to see if you qualify.

What fees and regulations are in place regarding VA mortgages?

Mortgages through the VA Loan Program are financed through private lenders. Since it is a federal program, the Department of Veterans Affairs acts as a guarantor for these loans, which means if a borrower defaults, the VA insures the balance. This is a huge incentive for private lenders and is one of the reasons so many offer the program.

Are there funding fees associated with financing a VA Loan?

Yes, there are. However, these fees are low (especially for first-time users) and can vary based on a borrower’s circumstance and veterans with a disability due to a service-related incident will never have a funding fee. Borrowers who are using the VA Loan program for the first time will have a funding fee of 2.15 percent. Each time using the program after their first loan, the service member’s funding fee will be 3.3 percent.

In many cases a borrower will not be required to provide a down payment and thanks to limits set by the VA, closing costs are minimal with sellers having to provide most if not all of the expenses.

Keep reading to dive deeper into the details of the VA Loan Program. If you would like to view a list of lenders near you who offer this service, visit our lenders page.



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