VA Loans

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What Is a VA Loan?

A VA loan is a home financing option backed by the U.S. Department of Veterans Affairs (VA), created to help eligible veterans, active-duty service members, members of the National Guard and Reserves, and certain surviving spouses achieve homeownership.

One of the key advantages of a VA loan is that it typically offers 100% financing — meaning no down payment is required in most cases. VA loans also feature competitive interest rates, no private mortgage insurance (PMI), and more flexible credit and income requirements compared to many conventional loan options.

While the VA guarantees a portion of the loan, the financing itself is issued by approved private lenders such as banks and mortgage companies. This guarantee helps reduce risk for lenders, making it easier for qualified borrowers to access favorable loan terms.

As of 2024, the VA no longer imposes loan limits for eligible borrowers with full entitlement. However, some lenders may still apply internal loan limits based on local market conditions. For reference, the conforming loan limit in most areas is $766,550.

If you're considering a VA loan, the team at Sterling Financial Services is experienced with VA lending guidelines and can walk you through the process to ensure you understand your options and benefits.