Veterans Administration Loan Guaranty Program (VA)
Definition of "Veterans Administration Loan Guaranty Program (VA)"
Loan guaranty program included in the Servicemen's Readjustment Act of 1944. Its provisions cover the compensation to lenders for losses they might sustain in providing financing to approved veterans. The maximum guaranteed amount which has periodically been increased, is set by the VA as is the maximum interest rate charged by lenders. There are no provisions on the upper limits of the loan-to-value ratio, which means that it is quite common for an approved veteran to receive 100% VA financing. It should be noted that some lenders set limits on how much they will finance using VA financing. The VA guarantees loans up to 30 years. A VA loan is assumable, however, unless released by the lender, the veteran who borrowed the funds initially remains liable to the lender. Lenders cannot insert prepayment penalties under either VA or FHA loans. A mortgage without a prepayment penalty is commonly referred to as an open mortgage, while one that cannot be prepaid is a closed mortgage. The VA limits the points charged to the buyer to one. Any other points must be paid by the seller.
Popular Real Estate Terms
Raising money by mortgages and borrowing the money directly from financial institutions. The presence of debt financing provides financial leverage, which tends to magnify the effects of ...
The fee charged by a governmental jurisdiction to enter in the public record the deed and other documents affecting the title to property at the time of a transaction. ...
Individual: Adjusted gross income less itemized deductions and personal exemptions. After taxable income is computed, the tax to be paid can be determined by looking at the tax rate ...
Holding and controlling property. It includes not only custody but also having some legal right. An example is occupying real property and enjoying its benefits. ...
Cash flow before subtracting income taxes. ...
Direct line of descent as from father to son. An example of a lineal hereditament would be passing of the title of real property by virtue of a will to the first-born son. ...
Analysis of the risks and rewards to an individual in making a particular property investment. Investment analysis considers the cost of the original investment, the investment return over ...
Style of architecture originating at the German Bauhaus, or architectural institute, in the 1920's associated with the International School of architecture. The Bauhaus style emphasized ...
Tile placed on a wall as decoration, such as in a bathroom or kitchen. ...
Have a question or comment?
We're here to help.