As part of the "GI Bill of Rights," veterans are able to obtain mortgage loans with little or no down payment and low interest rates, with loan to value ratios of up to %. Private lenders are protected from risk of default by a guarantee from the Department of Veteran Affairs (Federal Government) that assures repayment of the the debt. in the event the borrowing veteran defaults on Borrower does pay a 'funding fee' that can change at the direction of the VA.