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Loan Types

VA Loan

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs and made by private lenders for eligible veterans, service members, and some surviving spouses. Its biggest draws are no required down payment and no monthly mortgage insurance. A one-time funding fee usually applies, though some borrowers are exempt.

The VA loan is one of the strongest benefits earned through military service. The Department of Veterans Affairs doesn’t lend the money itself; it guarantees part of the loan, which lets private lenders offer no down payment and skip the monthly mortgage insurance that conventional and FHA loans often carry. That combination can make buying far more reachable.

Instead of monthly insurance, most VA loans have a one-time funding fee, and some borrowers, like those with a service-connected disability, are exempt. Eligibility runs through your Certificate of Eligibility. I’m a loan officer who helps eligible borrowers get VA loans, and I’m not affiliated with or endorsed by the VA; this is general education, not a government program offer.

Related terms

FHA Loan

An FHA loan is a mortgage insured by the Federal Housing Administration. It often allows a lower down payment and more flexible credit guidelines than conventional loans, which helps many first-time and credit-rebuilding buyers. The trade-off is mortgage insurance (MIP), which on many FHA loans can last longer than conventional PMI.

USDA Loan

A USDA loan is a mortgage backed by the U.S. Department of Agriculture for buyers in eligible rural and many suburban areas, with no required down payment. It has income limits based on your area and household size, and a guarantee fee instead of traditional mortgage insurance. The home must be in a USDA-eligible location.

Assumable Mortgage

An assumable mortgage lets a qualified buyer take over the seller's existing loan, including its interest rate and remaining balance, instead of getting a brand-new loan. FHA, VA, and USDA loans are often assumable, while most conventional loans aren't. When rates have risen, assuming a seller's lower-rate loan can be a real advantage.

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Last updated: June 13, 2026

This definition is educational and isn't an offer to lend or financial advice. Rates, programs, and guidelines may change without notice. All loans are subject to credit and property approval.

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