What Are VA Loans?
As the video says, the name is misleading – they’re not loans FROM the VA.
The VA – short for “US Department of Veterans Affairs” – is the Federal military veteran benefit system. They administer benefits and services for Servicemembers, Veterans, their dependents, and survivors. Programs related to home loans are one of their key services.
The VA is not a bank; they do not provide home loans themselves. But, they do guarantee a portion of home loans provided to veterans and other eligible people by banks and mortgage companies. These guarantees enable lenders to provide more favorable terms. They are commonly called “VA Loans”. They cover buying, building, repairing, retaining, and adapting homes for personal occupancy by eligible Veterans and survivors.