VA home loan guarantees are issued to help eligible service members, veterans, reservists and certain unmarried surviving spouses obtain homes, condominiums, residential cooperative housing units, and to refinance loans.

A VA guaranty helps protect lenders from loss if the borrower fails to repay the loan.

The VA funding fee must be paid to VA unless the veteran is exempt from such a fee because he or she receives VA disability compensation, usually accompanied by a Service Connected VA Disability Rating of 10% or higher. The funding fee may be paid in cash or included in the loan.

The VA funding fee is currently set at 2.15% for first-time use, and 3.30% for any subsequent use. (Yes, a qualified veteran may use his VA and/or CalVet loan multiple times!)