Although the VA Loan is a government program, the government generally does not make direct loans to veterans. Instead private lenders such as Veterans United Home Loans finance the loan and the Department of Veterans Affairs offers what is called a guaranty.

This guaranty, which protects the lender against loss of principal should the buyer default, provides incentive for private lenders to offer loans to those eligible.

A VA Loan can be used for a variety of home purchases, including

Houses

Townhouses

Condos

New Construction
 
 
The VA allows purchases of up to $417,000 with no money down, but borrowers can purchase houses for more in specific counties, or with the use of a VA Jumbo Loan.

The goal of the VA Loan program is to ensure those who served have the opportunity to purchase a home should they so choose. With that goal in mind, the VA does limit the use of the VA Loan in certain situations.
 
 
*courtesy of Veterans United Home Loans