Final Answer:
VA Loans are guaranteed by the FEDERAL government through the Department of Veterans Affairs (VA). Option B is the answer.
Step-by-step explanation:
VA Loans, a mortgage option available to eligible veterans and service members, are guaranteed by the federal government through the Department of Veterans Affairs (VA). The VA doesn't directly originate loans but guarantees a portion of the loan, reducing the risk for lenders and enabling veterans to obtain favorable loan terms, including lower interest rates and no down payment requirements. This guarantee encourages private lenders to offer more favorable terms to veterans, making homeownership more accessible to those who have served in the military.
Options A (Federal Housing Administration), C (Veterans Benefits Administration), and D (Housing and Urban Development) are incorrect as they do not directly guarantee VA Loans. The correct answer is Option B, the Department of Veterans Affairs (VA).
Option B is the answer.