Mortgage rates for Department of Veterans Affairs (VA) home loans are near their lowest levels ever. According to Ellie Mae, whose mortgage software manages more than 3.7 million mortgage transactions annually, VA loans account for roughly 1-in-10 closed loans. More than 30% of first-time users of the program are Gulf War veterans. Approximately 2% are Reservists. The Department of Veterans Affairs (VA) administers the VA Loan Guaranty program. The Department of Veterans Affairs does not make VA loans directly, though. VA loans are made by VA-approved lenders. The VA simply guarantees a portion of the loan, which protects the lender against loss. Because of the VA guarantee, VA-approved lenders can provide military borrowers with more favorable loan terms than for a non-guaranteed loan. For more information, visit the Military.com VA loan section.