VA Loan.

In plain English

A VA loan is a home loan guaranteed by the U.S. Department of Veterans Affairs and available to eligible active-duty service members, veterans, and some surviving spouses. The VA does not lend the money itself; it promises private lenders it will cover part of the loss if the borrower defaults, which lets lenders offer better terms. The headline benefits are no required down payment and no monthly private mortgage insurance (PMI). In exchange, most borrowers pay a one-time VA funding fee, which can be rolled into the loan, and the home must meet VA property standards.

01Why it matters

For someone who qualifies, a VA loan can mean buying a home without spending years saving a down payment, and skipping PMI saves real money every month. It is one of the strongest mortgage benefits tied to military service.

02The math, step by step

An eligible veteran buys a $300,000 home with no down payment and no monthly PMI. For a first-use purchase loan with no down payment, the VA funding fee was 2.15 percent of the loan amount as of 2026 (a rate in place since April 2023), which on $300,000 is $6,450. They roll it into the loan rather than paying it out of pocket at closing.

03What this is NOT

04Receipts

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