Glossary of Terms
A VA mortgage is a home loan guaranteed by the U.S. Department of Veterans Affairs, available to eligible active-duty service members, veterans and un-remarried surviving spouses. The program is designed to expand homeownership access through terms not typically available with conventional financing.
Key features include no down payment requirement, no private mortgage insurance and competitive interest rates. VA loans do carry a funding fee — waived for borrowers with qualifying service-connected disabilities. Borrowers with full entitlement are not subject to loan limits; those with reduced entitlement may have limits tied to county conforming thresholds.
VA loans require appraisals completed by VA-panel appraisers and adherence to Minimum Property Requirements (MPRs), which ensure the home is safe, structurally sound and sanitary. For loan originators and valuation companies, property condition issues that pass conventional review can still become obstacles in a VA transaction.