Some first-time home buyers are misinformed as to the workings of a VA Loan. The Veterans Administration does not normally act as a lending agent. Instead, the VA guarantees a portion of each loan in case the borrowing veteran defaults on the loan. If you are considering any kind of home loan, it's best to consult a credit counselor and a financial planner to find out what credit rating you already have and what you can do to improve your credit rating before applying for the guaranty.
It's important to know that a VA home loan guaranty is available only if the veteran meets all other eligibility requirements set forth by the VA and approved lenders.