Veterans Administration loans were created to help veterans finance the purchase of their homes with favorable loan terms. For the purpose of the VA program, “veteran” includes active duty service personnel and certain categories of spouses. Like FHA loans, the federal government insures VA loans, or guarantees VA approved lending institutions against loss from default on qualifying loans.

Programs and Features:

• Fixed Rate Loans
• Available for detached 1-unit dwellings, eligible condos and PUD's
• Properties must meet VA guidelines and be inspected by VA-approved appraisers
• Subject to loan limit set by VA, see 2023 High Cost County Limits below.
• No prepayment penalty
• 6-12 months PITI* reserve requirements at closing (depending on loan amount)
• No down payment required if loan amount does not exceed VA limit
• Out-of-pocket expenses may be gifted, typically from relatives
• Only eligible veterans and their spouses occupying the subject property may be co-borrowers or co-signers
• Seller may contribute a maximum of 4% of the lower of the sales price or the appraised value

* PITI: Principal, Interest, Tax, and Insurance