Will VA guarantee a loan to purchase a home in a foreign country?

The correct response is that the VA does not guarantee loans to purchase homes in foreign countries. The VA Home Loan program is designed to assist eligible veterans in purchasing homes within the United States and its territories. This program is focused on promoting home ownership domestically, providing veterans with favorable loan terms and conditions.

When considering loans for properties located outside the U.S., the VA's guarantee does not extend, which maintains the focus on supporting veterans within the domestic housing market. Thus, for any transactions involving properties abroad, veterans would not be able to access VA loan benefits. The other options suggest varying circumstances under which a loan could be guaranteed, but the VA's policy clearly delineates that guarantees are limited to properties within the United States.