• The regulations of VA mortgages specify who can borrow with a VA loan, how much money can be financed, what financing fees you have to pay and the financial qualifications you need. VA, or Veteran's Affairs, mortgages are only available to people who have served in the U.S. armed forces. They are backed by the Department of Veteran's Affairs, which guarantees the money in case the borrower fails to repay the loan. This enables veterans to put down less money than required for conventional loans. According to Bankrate.com, 91 percent of borrowers put down nothing when they use a VA loan.
  
  

Eligibility

• There are strict regulations as to who can take out a VA mortgage. Only veterans who meet the service requirements are eligible to apply for a VA-backed mortgage. If you enlisted after Sept. 7, 1980, you must have been on active duty for at least two years or spent six years serving in the National Guard. If you served before Sept. 7, 1980, you only need six months of service. If you served during a war, such as the Gulf War, Korean War, Vietnam War or World War II, three months of active service qualifies you. You also cannot have been dishonorably discharged. In addition, VA loans are only good for a home that you will use as your primary residence; you cannot use a VA loan for an investment or rental property.
  
  

Amount Guaranteed

• The Department of Veteran's Affairs regulates how much of the loan can be guaranteed. In most cases, the Department of Veteran's Affairs does not guarantee the entire loan. Qualified borrowers can have up to $36,000 guaranteed for homes up to $144,000. If your home price exceeds $144,000, the Department of Veteran's Affairs guarantees 25 percent of the loan as long as the loan conforms to the loan limits. For 2009 the limit is $417,000 for most areas in the continental U.S.
  
  

Fees

• VA mortgage financing regulations require an additional fee from the borrower. The fees that you pay for a VA mortgage depend on the amount of your down payment and whether it is your first VA loan or if you have had VA loans in the past. If you do not put a down payment, the fee is 2.15 percent for first-time VA loan borrowers and 3.3 percent for repeat VA loan borrowers. If you make a down payment between 5 and 10 percent of the purchase amount, the fee drops to 1.50 percent. If your down payment is over 10 percent, the fee drops to 1.25 percent.
  
  

Lending Qualifications

• Lenders are not allowed to discriminate against VA loans vs. conventional mortgages. However, the regulations of the individual lenders must be met in addition to the regulations set by the Department of Veteran's Affairs. You must be a good credit risk to be eligible for a VA loan and meet the income requirements set by the individual banks. If you had a bankruptcy within the past year, you will most likely not be eligible. Bankruptcies between one and two years in the past may not disqualify you if you can show that the bankruptcy was due to extenuating circumstances as long as you have rebuilt satisfactory credit.