V.A. Home Loans a Good Deal for Veterans

Veteran returning home from Iraq hugs wife
Veteran returning home from Iraq hugs wife

In a housing market convulsed by tight credit, flattened prices and weak home sales, there is a silver lining for one segment of the market: U.S. military veterans seeking V.A. home loans.

Most honorably discharged veterans are eligible for Department of Veteran Affairs home loans. What's the appeal? Even borrowers with no down payment or a less-than-ideal credit score can qualify. Veterans can borrow up to $417,000 (or more if the buyer lives in a county with higher average home costs.). Borrowers pay no private mortgage insurance. The V.A. sets limits on closing costs and origination and appraisal fees. All in all, it makes for getting a leg up in a market where lenders have clamped down hard.