Which term denotes a loan guaranteed by the Department of Veterans Affairs?

Which term denotes a loan guaranteed by the Department of Veterans Affairs?

• A. Public mortgage
• B. DVA guaranteed loan
• C. Department of VA
• D. VA loan

Answer: (D)

A loan guaranteed by the Department of Veterans Affairs is called a VA loan. In this setup, private lenders fund the mortgage and the VA guarantees a portion of it, which helps veterans qualify for financing with favorable terms, such as lower or no down payment and no private mortgage insurance in many cases. The term VA loan is the standard, widely used label for this government-guaranteed program. Other phrases listed aren’t the common name for the program: a public mortgage isn’t a recognized term for VA guarantees, “DVA guaranteed loan” isn’t the standard label, and “Department of VA” refers to the agency, not the loan type.

A loan guaranteed by the Department of Veterans Affairs is called a VA loan. In this setup, private lenders fund the mortgage and the VA guarantees a portion of it, which helps veterans qualify for financing with favorable terms, such as lower or no down payment and no private mortgage insurance in many cases. The term VA loan is the standard, widely used label for this government-guaranteed program. Other phrases listed aren’t the common name for the program: a public mortgage isn’t a recognized term for VA guarantees, “DVA guaranteed loan” isn’t the standard label, and “Department of VA” refers to the agency, not the loan type.