A VA loan is a mortgage loan is a loan established in 1944 by the United States Department of Veteran Affairs. It is issued by private finance houses and backed by the above-named agency to assist US veterans, widowed military spouses as well as those in active service to buy a home. It is one of the two known non-conventional mortgage loans that is guaranteed by the government. This means the government will repay the remaining part of the loan if the borrower defaults in payment. Since VA loans are guaranteed by the government, they are relatively easier to access than conventional mortgage loans. Although eligibility carries no minimum credit score requirement, lenders still look for borrowers with a minimum credit score of 620. Also, there is no prepayment penalty, meaning you won’t be fined if you pay off your loan early.