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
Stiff pipe used to cover electrical wiring for safety purposes. ...
Restitution or compensation for harm or wrong done. ...
A simple box-shaped house with clapboard siding and a gable roof. ...
Linkage of property ownership that connects the present owner to the original source of title. ...
Statement made verbally. It is better legally to have a written statement because verbal ones without witnesses may be denied. ...
Balcony or low ceiling overhang just above the main floor and between the next story. In a theater, a mezzanine is the first balcony above the stage. ...
Individual who gives false statements under oath, which is a criminal act punishable by imprisonment and fine. An example is signing a tax return that fraudently understates rental income, ...
Certificate issued by the government showing evidence that the veteran is qualified and the amount of guarantee available to maintain a VA loan. It is one of the documents necessary to ...
A certificate of ownership in a real estate company. Pledged assets for a borrowing. An example is an office building serving as collateral for the mortgage. Way of protecting property ...
Have a question or comment?
We're here to help.