What are the requirements and advantages of a VA loan?    VA loans are guranteed by the VA so the lender is protected against loss if you fail to repay the loan.  The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain a loan with no money down.    VA guaranteed loans are made by private lenders or mortgage companies to eligible veterans for the purchase of a home. They are available only to veterans or veterans and  their spouses. 

Following are the requirements and benefits of a VA Home loan:

• No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property).
• Primary residence only - You cannot use a VA loan to purchase investment property.  However, you can purchase a 2 - 4 family home as long as you use one of the units as your primary residence.
• Minimum credit score of 620 required.  660 required for loans in excess of $417k.
• Seller can contribute up to 6% towards your closing costs
• Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).
• Closing costs are comparable with other financing types (and may be lower).
• No mortgage insurance premiums.
• An assumable mortgage.
• Right to prepay without penalty.
• The cost of energy efficient items of up to $6,000 may be added to initial mortgage amount.  For improvements exceeding $3,000, the increase in the principal and interest payment must not exceed the expected savings in utility costs for the average month.
• VA assistance to veteran borrowers in default due to temporary financial difficulty.
• Property must meet certain inspections and certifications.  Minimum standards deal with heath, safety and structural and all deficiencies must be corrected.   Borrowers need to be careful in the selection process of the homes they are seeking to get a VA loan on.  The majority of foreclosures are sold as is, meaning the seller will make no repairs.  That is the main reason why many foreclosures may not qualify for a VA loan. 

You can apply for a VA loan with any mortgage lender that participates in the VA home loan program.  You will need a Certificate of Eligibility from VA to prove to the lender that you are eligible.