Which agency guarantees residential mortgages made to eligible veterans?

The Veterans Administration is the agency that guarantees residential mortgages made to eligible veterans. This program is specifically designed to help veterans, active-duty service members, and certain members of the National Guard and Reserves obtain home loans. By providing this guarantee, the Veterans Administration reduces the risk for lenders, encouraging them to offer more favorable loan terms such as lower interest rates and no down payment requirements.

The unique nature of this guarantee stems from the government's commitment to support veterans in achieving homeownership, recognizing their service to the country. This assistance is crucial in facilitating access to affordable housing for those who have served in the military. The program is a valuable benefit for veterans, enabling them to secure financing that they might not otherwise qualify for, especially if they lack a strong credit history or significant savings.

In contrast, the other agencies listed have different roles within the broader housing and financial systems. The Federal Housing Administration, for example, offers mortgage insurance that helps lower-income buyers secure loans but does not specifically guarantee loans for veterans. The Department of Housing and Urban Development focuses on national housing policy and research, while the Social Security Administration deals with social security benefits, rather than housing loans.