A VA loan is backed by the Department of Veteran Affairs for those who have served or are currently serving in the U.S. Military. It is designed to make home ownership a reality for active military or veteran members and families who may otherwise not afford it.

The VA loan is the most generous program because it allows for zero down payment and no mortgage insurance premium. The rules are very beneficial to qualified applicants — additional benefits include low interest rates, low closing costs, seller-paid closing costs, and flexible loan terms. Furthermore, there is no maximum loan amount (although the amount the VA will guarantee varies by location).

The VA will even help a borrower in default of the loan if there is a temporary financial difficulty.