A VA Loan may also be a terrific loan option, offered exclusively to military veterans. Requiring zero (0%) down, these loans are issued by federally qualified lenders, and are “guaranteed” by the U.S. Veterans Administration. The VA creates guidelines and eligibility requirements and issues a Certificate of Eligibility (COE) to qualified applicants. Unlike the USDA loan program – the other zero down loan program – the VA loan does not limit homebuyers to any particular geographic area. Also, the VA loan program does not require mortgage insurance. It does, however, require the applicant to pay a “Funding Fee” (can be financed into the new loan), the amount of which is based on the veteran’s type/length of service and whether or not he or she has already taken advantage of the program previously.