A VA Guaranteed Home Loan is a VA loan made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home which must be for the veteran’s own personal occupancy. The loan is “guaranteed” or backed by the VA (and thus the Federal Government). This guaranty means the lender is protected against loss if the veteran (or a subsequent owner who assumes the loan) fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.