What is the process in obtaining a VA Loan?

You need to contact the VA and get certified. They will check your DD214 and send you a certificate that you can then take to any loaning institution.

The VA guarantees that if you default on the loan, the bank still gets their money. As part of that deal, they require the bank to provide a certain fixed interest rate that is usually below the standard rates.

If you do default on the loan, you will still loose your home.

EDIT:

In regards to the post below this one. I did a VA loan in conjunction with a Texas Vets loan, and it was actually a better rate than just the VA loan by itself. The maximum amount of the loan is less than the VA's but it can work for a condo or something small. Check your state for added benefits. If you have a good realtor, they will know about any programs as well.

Go to http://www.homeloans.va.gov/ and find out - its all there.
http://www.homeloans.va.gov/
http://www.va-home-loans.com/va_loan_pro...
you apply for your certification and then see a realitor
you've already go some good answers but a lot of states offer better deals for vets...here in Texas it's called the Texas veterans land grant and it has better interest rates than the VA
You will need to obtain your VA eligibility certificate through the VA. Go to www.va.gov and follow the links.

Once you have the certificate go to most any mortgage company and tell them you want to apply for a VA loan. They will help you will all the paperwork of getting approved for a VA home loan. The process is longer and more detailed than getting a regular 30 year fixed conventional mortgage, but the benefits far out number the hassles.