The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is competitive with the rate charged on other type of mortgage loans. For VA housing loan purposes, the term "veteran" includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses.

VA guaranteed loans are made by private lenders such as banks, savings and loan associations, or mortgage companies. To get a loan, you apply to the lender. If the loan is approved, VA guarantees the loan when it is closed. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan.

To get a VA loan, the law requires that:

You must be an eligible veteran who has available home loan entitlement (except in the case of an interest rate reduction refinancing loan );

The loan must be for an eligible purpose;

You must occupy or intend to occupy the property as your home within a reasonable period of time after closing the loan;

You must have enough income to meet the new mortgage payments on the loan, cover the costs of owning a home, take care of other obligations and expenses, and still have enough income left over for family support (a spouse's income is considered in the same manner as the veteran's); and

You must have a good credit record.

To find out if you are eligible for a VA Loan, Go to: http://www.homeloans.va.gov