Real Estate Glossary > V > Veteran's Affairs Loan Definition

Most commonly known as a VA loan, this is a special type of loan backed by the government and only available to veterans of the US military and surviving relatives. The down payment The amount of money a buyer pays in cash at closing to fund a home purchase, usually expressed as a percentage of the total home price. required is usually 1 – 3% of the total loan amount and the interest rates The cost of borrowing money expressed as a yearly percentage rate. are lower. Veteran affairs loans are non- conventional A mortgage loan not insured by any government program and follows guidelines set by the government-sponsored institutions Fannie Mae and Freddie Mac. because they're backed by the government.