VA loan A low-cost loan for U.S. veterans that is partially guaranteed by the Department of Veterans Affairs (VA) If you are a veteran, you can get some VA loans without a down payment. You also can negotiate the interest rate with the lender. The loan amount cannot be more than the VA’s appraisal. If it is, you have to pay the difference in cash. You still need to pay closing costs, including appraisal and title insurance fees, as well as one-time funding fee for about 2% of the loan amount. VA loans present high risk to a lender since the VA guarantees a portion of the loan amount– usually 25%. So, in case of foreclosure, the VA has two choices: pay the lender the loan’s balance and take the property or pay the guaranteed amount and let the lender keep the property. Usually, to be eligible for VA loan, you must have served at least 181 days of active duty or at least six years in the National Guard. If you need information contact your regional VA office or call 1-800-827-1000. Compare: FHA mortgage