Finance
A VA loan guaranty means:
AThe government pays off the loan if the veteran defaults
BThe VA guarantees a portion of the loan to the lender, reducing lender risk✓ Correct
CThe veteran is guaranteed approval
DThe interest rate is guaranteed for the life of the loan
Explanation
The VA guarantees a portion of the loan (not the full amount) to the lender, which reduces the lender's risk and allows veterans to obtain loans with no down payment and competitive interest rates.
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