VA Loans
Mortgages backed by the Department of Veterans Affairs for eligible service members, veterans, and qualifying surviving spouses.
VA loans are one of the most attractive financing products available, period. Zero down payment, no monthly mortgage insurance, and competitive rates make them dramatically less expensive than most alternatives for eligible borrowers.
The VA charges a funding fee (usually 1.4%–3.6% of the loan amount, depending on service category, prior VA use, and down payment) that can be financed into the loan. Borrowers with a service-connected disability are typically exempt from the funding fee entirely.
VA underwriting uses residual income, money left over after all monthly obligations, as a key metric in addition to DTI. This often allows VA borrowers to qualify at higher DTIs than conventional underwriting would permit, recognizing that the unique structure of military pay supports loans that look tight on paper.
Related terms
Other terms you'll see alongside VA Loans
A government-insured mortgage program designed to help buyers with lower credit scores or smaller down payments qualify.
Zero-down-payment mortgages backed by the US Department of Agriculture for buyers in eligible rural and suburban areas.
The portion of a home's purchase price the buyer pays out of pocket up front, with the mortgage covering the rest.
The lender's formal review of a loan application to confirm it meets program guidelines and is acceptable to fund.
Want to apply VA Loans to your real numbers?
Get a personalized estimate in under a minute, or talk to a licensed HCMG loan officer about how this affects your specific situation.