What is the guarantee behind a VA Mortgage Loan?
The VA guarantees the loan to the lender in case the borrower defaults on the loan. This does not mean you are automatically qualified or entitled to a VA Loan, you still need to qualify based on your income, assets, credit profile etc. It also doesn’t mean if you default the VA will pay the loan for you and you can stay in the home. Under circumstances of default, VA Mortgage Loans still go through the same foreclosure process as conventional loans.
Related Questions
- Unfortunately, the law only allows VA to guarantee loans on property in the United States, its territories, or possessions. Q: Can I get a VA loan if I have had a bankruptcy in the last few years?
- What is the maximum amount of guarantee the VA will allow on a home loan and what is the maximum loan amount?
- Can I refinance my house up to the full appraisal amount or 100% loan to value (LTV) with a VA Mortgage Loan?
