What is one of the main purposes of the Veterans Administration regarding mortgages?

The main purpose of the Veterans Administration (VA) regarding mortgages is to encourage lenders to offer mortgages to veterans. The VA achieves this primarily through a loan guaranty program, which protects lenders against loss if a borrower defaults on their loan. This guarantee makes lenders more willing to extend credit to veterans who may have less conventional credit histories or lower income. By backing these loans, the VA facilitates access to home financing for veterans, helping them achieve homeownership and benefit from favorable loan terms, such as no down payment and competitive interest rates. This support plays a crucial role in promoting housing stability for veterans and is a key aspect of the VA's mission to assist those who served in the military.