Buying a home with a VA guaranteed home loan is definitely more buyer-friendly, but if you have never purchased a home before, there are a few additional terms and details you’ll need to learn about the VA.

One of the most common misconceptions lenders must dispel about VA mortgages is where the funds come from. Private banks issue the actual VA mortgage—no money comes from the VA itself. The Department of Veterans Affairs comes in on the veteran’s behalf with a loan guaranty, making the loan more secure for the lender. The VA promises to pay a specific amount of the VA mortgage should the veteran go into foreclosure.