Quick Notes About the VA Home Loan Guaranty

Quick Notes About the VA Home Loan Guaranty

What is the VA Home Loan ‘Guaranty’?

The VA home loan guaranty is an agreement that VA will reimburse a lender (such as banks, credit unions, mortgage companies, etc.) in the event of loss due to foreclosure. This guaranty takes the place of your down payment.

Who is eligible for a VA Home Loan?

Active-duty servicemembers and Veterans with discharges other than dishonorable, National Guard and Reserve service members and Veterans with an honorable discharge, certain eligible spouses, and other uniformed service personnel may be eligible for VA home loan guaranty benefits. The full listing is available online at: https://www.va.gov/housing-assistance/home-loans/eligibility/.

Is there a fee to use the VA Home Loan Guaranty?

Yes, but the funding fee can be waived (see list below). To keep the program viable, Congress instituted a program funding fee, which is a percentage of the total loan amount. This user fee varies based whether the loan is a first-time or subsequent (second, third, etc.) use of the benefit. The funding fee may be paid in cash or included in the loan at closing. *The funding fee can also be paid by the seller, lender, or any other party on your behalf. (See Chapter 8 of the Lenders Handbook) The first step in the VA Home  Loan Guaranty is to apply for your VA home loan Certificate of Eligibility; contact us anytime for assistance or if you'd like us to connect you with an experienced and certified VA Loan Mortgage lender in the Dallas-Fort Worth area.

Source: https://benefits.va.gov/homeloans

About Michael Brownstead

As a full time Broker-Owner of Brownstead Real Estate, LLC, a Veteran Owned Business in Frisco, TX, I operate throughout the Dallas-Fort Worth area, to include the Frisco, Plano, McKinney, Allen, Prosper, Little Elm, Southlake and Rockwall areas. I am a 24-year Army Retired Veteran Real Estate Agent based in Frisco and I operate throughout the DFW area! Contact us TODAY, it will be a pleasure to assist with your real estate needs!

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