Veterans can obtain a Federal Home loan for their primary residence.
Interest rates are not set by the VA and are negotiated with the bank.
The VA guarantees a percentage of the loan. The amount varies with the size of the loan, and is issued to protect lenders so they may make loans to eligible borrowers.
Because the lenders are able to obtain this guaranty from the VA, borrowers do not need to make a down payment, provided they have enough home loan entitlement. Borrowers also do not have to purchase Private Mortgage Insurance (PMI).
A Certificate of Eligibility is required to obtain a VA Federal Home Loan. To obtain this certificate, use VA Form 26-1880.