(1.) A type of mortgage available only to individuals qualified by military service or other entitlements. A VA Loan has many benefits, such as:

• No (or very low) down payment requirement
• No prepayment penalties
• Lower closing costs
• Ability to apply for an interest-rate reduction loan
• Ability to refinance to a lower rate with little or no out-of-pocket expenses

(2.) Contrary to some other special mortgage programs, a VA loan is not actually provided by the federal government, but simply insured by the government and then provided to private lenders.

(3.) People qualified for VA Loans:

• Active military personnel
• Veterans
• Reservists
• Members of the National Guard
• Unmarried widows/widowers of qualifying members of the armed forces who died serving in the military.