What is a VA-Guaranteed Loan
VA-guaranteed loans are made by private lenders, such as banks, savings and loan associations, or mortgage companies. To get a loan, you apply to the lender. If the loan is approved, VA will guarantee part of it. The amount of V's guaranty usually depends on the size of the loan. This guaranty protects the lender against loss up to the amount guaranteed by VA. The largest guaranty that VA can give a lender is $50,750. Lenders generally limit the maximum VA loan to $203,000, which is 4 times the maximum VA loan.
VA-guaranteed loan offers a number of safeguards and advantages. For example, the interest rate on a VA loan is competitive with conventional rates with little or no down payment required. The loan guaranty 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 loan
Who Is Eligible
Generally, the following groups 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 (until 9/30/07)
- Surviving spouses of certain deceased veterans
Note: There are certain other groups who may be eligible. For information about these groups, call VA toll free at 1-800-827-1000.
How Can I Apply
You can apply for a VA-guaranteed loan through a private lender. If you need help in finding a lender, please contact your local County or Tribal Veterans Service Office. You will need a VA Certificate of Eligibility to prove to the lender you are eligible. If you don't have a Certificate, your lender can help you get one or you can get one from your va.gov account.
To obtain more information about benefits, contact your local CVSO or TVSO.
