What type of loan is long-term, low, or no-down payment, guaranteed by the Department of Veterans Affairs?

A VA Loan is a mortgage option designed specifically for eligible veterans, active service members, and certain members of the National Guard and Reserves. One of the main features of VA loans is that they require little to no down payment, making homeownership more accessible for those who have served in the military. Additionally, these loans are backed by the Department of Veterans Affairs, which provides a guarantee to lenders, reducing the risk associated with lending to a veteran. This guarantee can also help in negotiating favorable terms, such as lower interest rates.

The option of a funding fee relates to the costs associated with obtaining a VA loan but does not describe the loan type itself. Absolute title refers to a clear and unencumbered ownership of property, which is less about financing and more about legal ownership issues. Abandonment pertains to the non-use or neglect of property, which is not relevant to the context of loans. Therefore, the characteristics and advantages of a VA loan clearly illustrate why it is the correct answer to the question regarding long-term, low, or no-down payment loans guaranteed by the Department of Veterans Affairs.