VA loan or mortgage

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VA loan or mortgage

A home loan guaranteed by the Department of Veterans Affairs (www.homeloans.va.gov/elig2.htm) (known as the Veterans Administration before 1989), which will pay the lender up to certain limits if the borrower defaults.In some instances, the VA will decide to purchase the home from the lender after default and attempt resale,calculating that the profits from a resale will make the transaction cheaper than paying off the loan. By law, it is required to do this analysis on all defaulted loans.Eligibility for a VA guarantee is complicated and depends on the borrower's dates, length, and type of service; whether the borrower is currently active in the military; whether the borrower is in the National Guard or the Reserves; and the number of months the borrower was in peacetime or combat service.

References in periodicals archive ?
FHA market share declined while VA loan share held steady.
On June 22, VA will celebrate the 75th anniversary of the VA Loan Guarantee.
The median loan amount for first-time homebuying servicemembers with a VA loan increased in nominal dollars from $156,000 in 2006 to $212,000 in 2016, closely tracking the median value of conventional home loans taken out by non-servicemembers.
The VA Loan Electronic Reporting Interface Redesign task order, managed by the Veterans Benefits Administration Loan Guaranty Division, has an estimated value of $16.3M over a base performance period of 18 months.
12 passed HR 3561, legislation that gives VA appraisers the ability to rely solely on information from approved third parties--such as an appraisal trainee or property inspector under the direction of a VA appraiser--when determining a home's value for a VA loan. The bill's sponsors reportedly intend for it to address timeliness issues with some appraisals in rural areas.
If you qualify, a VA loan requires no down payment whatsoever, nor does it require mortgage insurance, so it's usually a smart choice for those who can take advantage of it.
There's no time limit on when veterans must use the benefit and no limit on how many times they can use it, as long as the home purchased with a previous VA loan has been sold or the loan paid off.
There are now an estimated 22 million veterans in this country, many of them with eligibility for VA loan benefits.
The VA Loan Guaranty amount varies with the size of the loan and the location of the property.
This drop is largely the result of the decline in the market share of the FHA and VA loan programs and the concurrent rise in the securitization of non-government-backed mortgages.
The average house price financed with a conventional loan was $165,509; with an FHA loan, $92,340; and with a VA loan, $99,932.
Because there are no disadvantages (VA loan rates are comparable with conventional interest rates), eligible veterans or their surviving spouses should inquire further about such loans through local mortgage-lending institutions.