Which federal agency manages the VA loan program?

The U.S. Department of Veterans Affairs (VA) is the federal agency responsible for managing the VA loan program. This program provides home loan benefits to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves, allowing them to purchase, build, or refinance homes with favorable loan terms, including no down payment in many cases. The VA establishes guidelines for lenders to follow when issuing these loans and guarantees a portion of the loan, which reduces the risk for lenders and makes homeownership more accessible to veterans.

In contrast, the Department of Housing and Urban Development oversees many federal housing programs but does not manage the VA loan program specifically. The Federal Reserve Board regulates the banking system and does not have a direct role in loan programs for veterans. The Federal Housing Administration (FHA) provides mortgage insurance on loans made by approved lenders to borrowers with low to moderate incomes, but again, it is not involved in managing the VA loan program.