Department of Veterans Affairs

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Department of Veterans Affairs

A department of the U.S. federal government devoted to serving the interests of American military veterans. Among other things, the Department guarantees mortgages borrowed by veterans to increase veteran homeownership.

Department of Veterans Affairs (VA) mortgage.

Department of Veterans Affairs (VA) mortgages enable qualifying veterans or their surviving spouses to borrow up to the annual federal limit in order to buy conventional homes, mobile homes, and condominiums with little or no down payment.

The VA guarantees repayment of the loans. This federal guarantee means that banks and thrift institutions can afford to provide 30-year VA mortgages on favorable terms even during periods when borrowing in general is expensive.

Interest rates on these mortgages, formerly fixed by the Department of Housing and Urban Development (HUD), are now set by the VA itself. For more information, call the VA's local toll-free number listed in your phone book.

Department of Veterans Affairs (VA)

Established on March 15, 1989, to replace the former Veterans Administration,it is currently the second largest of the 15 Cabinet departments and is headed by the secretary of veterans affairs. It provides a wide variety of programs, including guarantees of mortgage loans received by eligible veterans.

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