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
The word’s etymology reflects several diverse or seemingly unrelated topics under the same umbrella. As part of everyday discourse, you’ll find the term “omnibus” ...
Angle from north or south of a property. When a real estate appraiser does surveying, it is looked at clockwise from north. It may assist in determining the form or boundaries of land. ...
The total return from holding a real estate investment for the holding period of time. The computation follows: For a mutual fund investing in a real estate, the return is in the form ...
Something that is illegal. An example is an unenforceable debt because it has exceeded the statute of limitations. ...
Legal rule, principle, or tenet. ...
Eight-by-four sheet of material attached to a wall's studs. It can be made attractive by wallpapering or painting. ...
The process of upgrading unusable land through making physical improvements. For example, swamp land can be drained and filled in order to make it usable. Barren land can be reforested by ...
The basic definition of an acquisition loan is the kind of loan that gives a company the funds necessary to make a purchase. The type of investment depends on the company’s activity, ...
Exchange of products or property between individuals in which no cash is paid. ...
Have a question or comment?
We're here to help.