VA loan
A mortgage guaranteed by the Department of Veterans Affairs for eligible veterans, service members and some surviving spouses. It usually needs no down payment and no monthly mortgage insurance, but most borrowers pay a one-time funding fee.
Also called: VA, VA mortgage, veterans loan
Related terms
A one-time fee on VA loans that helps fund the program, figured as a percentage of the loan and often added to the balance. The rate depends on down payment and prior VA use; veterans with service-connected disability are generally exempt.
The part of the purchase price you pay in cash rather than borrow. A larger down payment lowers the loan amount and can remove the need for mortgage insurance on a conventional loan.
A mortgage a buyer can take over from the seller, keeping its rate and remaining term. FHA, VA and USDA loans are generally assumable with lender approval; most conventional loans are not. The buyer pays the seller's equity in cash or other financing.
A mortgage insured by the Federal Housing Administration, allowing low down payments and more flexible credit standards. Borrowers pay an upfront and annual mortgage insurance premium, and loan amounts are capped by county.
A mortgage backed by the US Department of Agriculture for homes in eligible rural and some suburban areas. It can require no down payment, has income limits, and charges upfront and annual guarantee fees.