Federal VA Home Loan Guaranty
USDVA is the guarantor.
Markets set the interest rate and fees.
USDVA places limitations on the fees a veteran may pay, so often the seller must contribute to the transaction. Funding fees can usually be added to the loan and will be waived for veterans receiving VA disability compensation. Once paid, it is usually not refundable.
Federal VA Home Loan Guaranty is a "life of loan" meaning the benefit reduces the risk to the lender.
Zero down payment loans are possible
Mortgage originators set the various rates and fees, subject to federal VA limitations on what costs may be paid by the veteran borrower. Other fees and costs are often paid by the seller.
Loans may be serviced at the originating lender, but servicing may also be transferred to other lenders or mortgage servicing firms. Loan servicers may charge fees for simple services such as reamortization, loan payoff letters, copies of annual statements, etc. USDVA may limit those fees, but does not prohibit charges.