VA or Veterans Affairs loans are unique to military service members and veterans who want to buy a home. It’s the only mortgage that does not require down payment and there is no minimum credit score. The U.S. Department of Veterans Affairs guarantees a percentage of every VA home loan so borrowers don’t have to make a down payment or pay for private mortgage insurance (PMI). VA loans are only available to use if it is for a primary residence, be it to purchase, build, or remodel a home to be more accessible for service-related disabilities. It can't be used to purchase a vacation or investment home. The U.S. Department of Veterans Affairs guarantees a percentage of every VA home loan so borrowers don’t have to make a down payment or pay for private mortgage insurance (PMI).

The following are its loan eligibility requirements:

• For active-duty service members: served at least 90 continuous days of active duty
• Borrower served in the Army, Navy, Air Force, Marine Corps or Coast Guard after Sept. 15, 1940 and must have have served for at least 181 continuous days during peacetime or at least 90 days, any part of which occurred during wartime. May not be eligible for those who were dishonorably discharged or did not serve long enough
• National Guard members and reservists qualify if they are mobilized for active duty for at least 90 days or discharged because of a service-connected disability. They also qualify after six years of honorable service.
• Certificate of eligibility to participate in the VA loan program
• Surviving spouses also can sometimes get VA loans if their husband or wife passed away while serving or due to a service-related disability, became a prisoner of war or went missing in action.
• Meet financial requirements to pay mortgage.

The loan amount depends on the entitlement and the financial capacity of the borrower to meet the mortgage obligations. Income and debts are factored in, like in any other type of mortgage. VA jumbo loan is also available for a high-cost property.

VA loan is ideal for military service members, veterans, and surviving spouses with the following benefits:

• No down payment required
• No PMI
• No minimum credit score requirement
• No maximum loan amount
• It’s easy to refinance if interest rates fall
• VA loan modification can help if you fall behind