True or false: The VA home loans guarantees the first 20% of the loan.

The statement regarding VA home loans is true because the VA guarantees a portion of the loan to lenders, which typically covers up to 25% of the loan amount. This guarantee provides assurance to lenders that they will be compensated if the borrower defaults on the loan. This means that if a veteran is looking to purchase a home using a VA loan, the VA's guarantee will effectively make it easier for them to qualify for a loan, as it reduces the risk for lenders.

However, it is important to clarify that while the VA guarantees 25%, the first 20% is often associated with conventional loan standards, which may lead to confusion. In the context of VA loans specifically, the amount guaranteed can vary based on the loan amount and entitlement of the borrower.

Other options might suggest variability or uncertainty about the guarantee, but this isn't applicable in the context of how VA loans operate as they have a clear structure and benefit designed specifically for veterans.