A VA loan is a type of mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs and is available to eligible veterans, active-duty military members, and some surviving spouses.

A VA loan can be a qualified mortgage (QM) loan, which means that it meets certain standards set by the Consumer Financial Protection Bureau (CFPB) to ensure that the borrower has the ability to repay the loan. To qualify as a QM loan, a VA loan must meet specific criteria, such as a maximum debt-to-income ratio, limits on fees and points, and restrictions on certain loan features.

VA loans may offer certain benefits to borrowers, such as the ability to purchase a home with no down payment, competitive interest rates, and flexible credit score requirements. In addition, VA loans may have lower closing costs and no private mortgage insurance (PMI) requirement, which can help reduce the overall cost of homeownership.

To qualify for a VA loan, borrowers must meet specific eligibility requirements, such as having served in the military for a certain period of time and having a valid Certificate of Eligibility (COE). Borrowers may also need to meet certain income and credit requirements, depending on the lender.

It’s important for borrowers to carefully review the terms and requirements of a VA loan and to work with a reputable lender who can help guide them through the loan process. Borrowers should also ensure that they have a clear understanding of the loan terms and their ability to make the required payments.