A VA loan is a mortgage loan program offered by the U.S. Department of Veterans Affairs (VA) to eligible veterans, active-duty service members, and some surviving spouses.

The VA loan program aims to help veterans and their families achieve homeownership by providing favorable loan terms and benefits.

Here are some key features of VA loans:

1. Eligibility: VA loans are available to active-duty service members, veterans who meet certain service requirements, and some surviving spouses. The specific eligibility criteria include length and type of military service, discharge status, and other factors. It's advisable to check with the VA or a VA-approved lender to determine your eligibility.

2. No down payment: One of the significant advantages of VA loans is that they typically do not require a down payment. This can make homeownership more accessible for eligible borrowers. However, borrowers may still have to pay certain closing costs and fees.

3. No mortgage insurance: VA loans do not require private mortgage insurance (PMI) since they are backed by the VA guarantee. This can save borrowers a significant amount of money each month compared to conventional loans or FHA loans, which usually require mortgage insurance.

4. Competitive interest rates: VA loans often offer competitive interest rates that are generally lower than those of conventional loans. This can result in lower monthly mortgage payments and potentially save borrowers money over the life of the loan.

5. Flexible credit requirements: VA loans tend to be more flexible when it comes to credit requirements compared to conventional loans. While specific lender requirements may vary, the VA does not set a minimum credit score requirement. However, lenders may have their own credit score benchmarks.

6. Loan limits: VA loans do have loan limits, which determine the maximum amount that can be borrowed without requiring a down payment. These limits vary depending on the location of the property and are updated annually. Borrowers can still secure VA loans for amounts exceeding the loan limits, but a down payment may be required for the portion above the limit.

It's important to note that while VA loans offer numerous benefits, borrowers should still evaluate their financial situation, compare loan offers from different lenders, and consider their long-term goals before deciding on a mortgage. Working with a VA-approved lender who specializes in VA loans can provide guidance throughout the process and ensure that all VA loan requirements are met.