A VA loan is a mortgage loan that created by the United States Department of Veteran Affairs. These loans were created to help veterans achieve the goal to purchase a home. The loans do not originate from the Department of Veteran Affairs. The VA instead set up guide lines on who qualifies and the terms of the Mortgage loans borrowed. Also they insure the loans against default. Unlike other Federal Housing loans for example (FHA loans). The borrower of a VA loan is not required to have a down payment, VA loans cover 100% of the value of the home. The borrower must show proof of their eligibility for the loan to qualify.