These mortgages are guaranteed by the Department of Veterans affairs and are only for military veterans. Veterans can get exceptional deals, such as zero down payment and no pre-payment penalties. With this type of loans veterans and their families can easily become homeowners.

The VA Loan provides veterans with a federally guaranteed home loan which requires no down payment. This program was designed to provide housing and assistance for veterans and their families.

The Veterans Administration provides insurance to lenders in the case that you default on a loan. Because the mortgage is guaranteed, lenders will offer a lower interest rate and terms than a conventional home loan. VA home loans are available in all 50 states. A VA loan may also have reduced closing costs and no prepayment penalties.

In addition, there are services that may be offered to veterans in danger of defaulting on their loans. VA home loans are available to military personal that have either served 181 days during peacetime, 90 days during war, or a spouse of serviceman either killed or missing in action.

• Competitive interest rates that are routinely lower than conventional rates
• No prepayment penalties
• Sellers can pay up to 6 percent of closing costs and concessions
• Higher allowable debt-to-income ratios than for many other loans
• Streamlined refinancing loans that require no additional underwriting