With regard to qualified mortgages, VA-insured or -guaranteed loans are considered:

• A. Safe harbor qualified mortgages
• B. Non-qualified mortgages
• C. Conforming mortgages
• D. Non-conforming mortgages

Answer: (A)

Qualified Mortgage rules create a safe path for lenders when a loan meets the criteria that demonstrate the borrower's ability to repay. VA loans, being insured or guaranteed by the government, automatically fall into the Safe Harbor Qualified Mortgage category because the government guarantee and the standard underwriting associated with VA financing align with the ATR requirements. This designation gives lenders safe harbor protection from certain ATR-related liability as long as the loan remains a QM and fits the usual VA loan structure (typically fully amortizing, long-term payments and no risky features like negative amortization). In short, VA-insured or guaranteed loans are treated as Safe Harbor QMs, whereas the other labels describe market eligibility or non-QM status rather than the protective QM category.