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
A lease requiring tenants to pay all utilities, insurance, taxes, and maintenance costs. ...
Condensed appraisal report covering the major items. ...
Time period for which one expects to keep property such as a real estate investment. ...
Individual who enjoy a freehold land right. ...
Provision in an agreement in which its renewal is a matter of course at the end of its initial term. ...
Significant elevation of land. Narrow upward strip. Connection of edges between different sloping surfaces. ...
Holding pool of mortgages. It is marketed as a tax exempt mortgage backed security for investors. ...
Impeding and restricting people in various activities based on their race, ethnic reasons, or religion now goes against US laws in effect. In the past, especially in the 1960s, ...
Basis for the valuation of property acquired from a decedent for tax purposes. The unified transfer tax in 1976 provides for the valuation of property to be the adjusted basis immediately ...
Have a question or comment?
We're here to help.