Sometimes military veterans do not have the borrowing potential that conventional homebuyers enjoy. To honor their service and to recognize their unique financial situations, many finance companies allow veterans to apply for VA loans when they want to buy a house. This special type of financing may allow a veteran to buy a house without having to worry about a down payment. Most conventional loans require that borrowers put at least 20% down on the cost of a home before they are approved for financing. Veterans, however, may not have access to this amount of money. Rather than deny people who served in the military the opportunity to purchase a home, lenders accept underwriting from the federal government through the Veterans Administration program. This underwriting assures lenders that they will receive their payments, even if the veteran defaults on the loan. Veterans also enjoy lower interest rates on these loans.