In real estate finance, a V.A. loan is a housing loan made to an eligible veteran by a bank, savings and loan association, or other approved lender. The loan is guaranteed by the Department of Veterans Affairs, which reduces the lender’s risk.
Because of the government guarantee, V.A. loans often allow qualified veterans to purchase property with little or no down payment and favorable terms. These loans are designed to assist veterans in obtaining home financing under more accessible conditions.
