A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing. The Department of Veterans Affairs does not directly originate VA loans; instead, they establish the rules for those who may qualify, dictate the terms of the mortgages offered and insure VA loans against default. Borrowers need to provide a Certificate of Eligibility to be able to verify they are eligible for a VA-guaranteed home loan.
Source: http://www.benefits.va.gov/HOMELOANS/purchaseco_eligibility.asp)