The most significant benefit of a VA home loan for a lender is that certain portion of the loan amount is guaranteed by the Veterans Administration (VA), thereby protecting the lender’s money in case the borrower defaults with the loan. In a VA loan, the guaranteed loan amount is known as an entitlement. As per existing norms, maximum entitlement for VA home loans is $60,000 for a loan amount of $144,000.

In order to qualify for a VA home loan, the applicant must either be an active or former member of the US armed forces, or have served the country during wartime. Reservists and members of National Guards are also eligible to apply for these loans. However, it is important that the applicant meets the specific criteria for length and time of service and also the way in which he/she was discharged from duties. VA home loans are also available to members of the Public Health Service. A widow or a widower is also eligible to apply for a VA loan, provided the death of the spouse occurred as a result of service or service-related injuries. In case a person was discharged earlier from service due to service-related disability, he/she can meet the local VA loan officer so as to verify he/she would be eligible for the loan. Only after this should the person apply for a VA loan.