A VA loan is a loan by the government to any qualified veteran of the armed services. They usually have a lower interest rate than a regular(conventional) home loan and are available with 100% financing, $0 down and no mortgage insurance premiums. Military home loans are also known as VA home loans, VA mortgages, or military mortgages. ... These loans are issued by private lending companies and guaranteed by the Veterans Administration. Compared to other loan types, military home loans are easier to qualify for and have better interest rates. The VA loan is a $0 down payment mortgage option available to Veterans, Service Members and select military spouses. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). The VA home loan was created in 1944 by the United States government to help returning service members purchase homes without needing a down payment or excellent credit. This historic benefit program has guaranteed more than 22 million VA loans to help veterans, active duty military members and their families purchase homes or refinance their mortgages. Today, the VA mortgage is more important than ever. In recent years, lenders nationwide have tightened their lending requirements in the wake of the housing market collapse, making the VA loan a lifeline for Veterans and active Military homebuyers, many of whom find difficulty when faced with tough credit standards and down payment requirements.