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A VA loan is a type of mortgage loan in the United States, and these loans are guaranteed by the Veterans Administration. Such VA loans are issued by certain qualified lenders.

The system of VA loan was introduced in the USA to offer better financing options to the surviving veterans or their spouses, provided they do not re-marry. The VA loan system allows veterans 100% financing without any mortgage insurance or 20 financing under the second mortgage. The Veterans Association is paid a funding fee ranging from 0% to 3.3% of the loan amount, and these fees are also financed.

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