VA Loans have provided thousands of veterans and their families with the means to achieve their dream of home ownership. These simple and low-cost loans are among the most flexible on the market.

The Veterans Administration insures loans, but does not issue them. That guarantee provides a degree of security for lending institutions and often helps borrowers secure favorable loan terms. There are more VA loans guidelines worth reviewing.

VA loans allow qualified borrowers to purchase homes without a down payment. They are typically less expensive and offer better rates than convention loans. Borrowers do not have to pay for private mortgage insurance.

There are several kinds of VA loans, including those for home construction and home and energy improvement. Prospective borrowers must obtain a Certificate of Eligibility, which insures that they meet the most basic VA loan requirements to be considered for a VA loan.

Any military member who has served 181 days on active duty during peace time or 90 days during war time may be eligible, along with those who have served at least six years in the Reserves or National Guard. Spouses of service members killed in the line of duty may also be eligible.

A borrower who is eligible will not necessarily qualify for a loan. The VA will examine a prospective borrower’s credit history, employment status, income and general financial history. Poor credit is not an automatic disqualifier, nor is bankruptcy or foreclosure.

Qualified borrowers without stellar credit can still obtain good rates on a VA home loan. Loan limits can vary by state. The federal government recently raised the VA loan limit to $729,000 for those in high-cost areas like California and New York.

Veterans who have a conventional home loan can also utilize the VA to refinance up to 90 percent of their home’s appraised value. The agency’s VA Interest Rate Reduction Refinancing Loan (often called a VA Streamline) does not require certificates of eligibility or appraisals.

Borrowers can refinance without paying any out-of-pocket expenses using a VA Streamline.