The Department of Veterans Affairs offers residential mortgages that are guaranteed and available to Military Service veterans, service men and women currently on active duty, and their surviving spouses. This program allows for a zero-down payment (as long as the sales price does not exceed the appraised value) and does not have monthly mortgage insurance. Closing costs are limited and closing costs may be paid by the seller, and there are no prepayment penalties if you pay your loan off early, and the loans may be assumable. To be eligible for a VA-guaranteed home loan, you must have satisfactory credit, sufficient income, and a valid Certificate of Eligibility (COE) and the home must be used for your primary residency.