What Does the VA Use to Approve VA Mortgage Loans?
For the first time home buyer, VA loans can be confusing. There are many misconceptions about VA mortgage loans, starting with who issues the loan. The VA guarantees the loan but does not issue them. Understanding this goes a long way towards understanding the VA’s role in the lending process. WHO APPROVES MY LOAN? According to the VA, most VA home loans are approved by the lender using criteria and lending guidelines set by the VA. In the process of servicing a VA loan, many people talk of what the VA will approve or won’t approve–most articles written about VA loans even talk of the VA in terms of the agency approving your individual loan. In most cases these discussions actually refer to the rules and established precedents covered by government regulations. When the VA needs to handle an individual case, it’s usually because the circumstances aren’t addressed clearly by existing rules or the lender requires additional information. In these cases, the VA does have the final word. I
