Hello to all of my Veterans and Active-Duty service members out there, and today I want to talk with you perhaps about the most foundational issue when it comes to VA loans out there.

And that is simply this, What is a VA loan and how do they work? So let's start with the VA home loan and its most basic form. The VA home loan is simply this. It's a government backed loan that allows you and I as Veterans to purchase a home with no money down.

Good to go? So let's take that one step further. The VA loan allows us as Veterans once again to purchase a home, no money down and the reason why we're able to do that is just because the VA, they're over here they say, hey, listen, Mr. Lender, in the event that the mortgage were to default, in other words the Veteran wasn't able to make their monthly payment, we'll send you a check for 25% of the loan balance.

In essence, what I'm saying active-duty service members, is simply this, the VA does NOT lend the money. All they do is guarantee the VA loan, which allows us as Veterans to purchase a home up to any purchase price we'd like, we have to get qualified of course, right, have to have the credit score and the income, but it allows up to purchase a home up to any purchase price we'd like with no money down and no private mortgage insurance.