VA guaranteed loans are made by lenders and guaranteed against payment default by the US Government.    The Government created the VA loan program as a benefit for those who served in the Armed Forces.  The biggest advantage of the VA Loan program is that the borrower can purchase a home with zero down.

• Low to no down payment
• Seller contributions are allowed
• More flexible underwriting (approval)
• Closing costs that lenders can charge are restricted (e.g. Loan Origination Fee cannot exceed 1%)
• The VA Funding Fee is waived if the veteran is determined to be “disabled”
• VA loans are “assumable” to other qualified buyers
• VA Refinances can be streamlined (less documentation required for approval)
• Some closing costs may be financed (less out of pocket expenses)
• The VA loan is guaranteed by the US Government which makes it more desirable for lenders and other institutions