What is a VA-Guaranteed Loan?
Guaranteed by the Department of Veteran Affairs for qualified veterans a VA-guaranteed loan can be used to:
- buy a home, a manufactured home, or a condominium
- buy a lot for a manufactured home
- build, repair, or improve a home (including energy efficient improvements)
- refinance an existing VA loan
A VA-guaranteed loan offers a number of protections and advantages over a non VA-guaranteed loan.
For example, the interest rate is competitive with conventional rates with little or no down payment required. VA-guaranteed loans are made by private lenders, such as banks and mortgage companies
Lenders are able to provide 100% financing since VA will guarantee part of the loan in case of a loss. The amount of VA’s guaranty usually depends on the size of the loan. The largest guaranty that VA can give is equal to 25% of the conforming loan limit for single-family residences based on market area.
Who Is Eligible?
Typically, the following persons are eligible:
- veterans who were discharged since 9/16/40, under other than dishonorable conditions
- military personnel on active duty who have served a minimum period
- certain Reservists and National Guard members
- surviving spouses of certain deceased veterans
* Some other groups of individuals who may be eligible for VA financing. Check with you lender to see if you may qualify.
Call VA loan specialist Lee Robinson at (479) 616-1722, email Lee@nwamortgagepro.com or complete the form below
