American veterans have access to a variety of benefits that are not available to non-service members. If you’re a veteran, you have access to loans to purchase, retain, build, adapt, or repair your home. There are many benefits of applying for a VA home loan instead of a conventional mortgage.
The US Department of Veterans Affairs backs veteran loans issued by a private lender or mortgage company. A VA home loan is different from a conventional loan in several ways. One of the important differences is that the government backs the loan. If a veteran defaults on a home loan, the government repays a portion of the debt to the lender or mortgage company.
A private lender assumes all risks for a conventional loan. Because the government is assuming some of the risks for veteran loans, lenders and mortgage companies can relax some of their requirements for obtaining a VA loan. This makes it easier for veterans to purchase a home. The lower risk associated with VA loans encourages private lenders to offer loans to veterans at better rates and terms.