VA-Guaranteed loans are made by private lenders, such as banks, savings and loan associations, or mortgage companies. To get a loan, you apply to the lender. If the loan is approved, VA will guarantee part of it. The amount of the VA’s guaranty usually depends on the size of the loan. This guaranty protects the lender against loss up to the amount guaranteed by VA.  The largest guaranty that VA can give a lender is $60,000. Lenders generally limit the maximum VA loan to $240,000, which is 4 times the maximum VA loan.

A VA-guaranteed loan offers a number of safeguards and advantages. For example, the interest rate on a VA loan is competitive with conventional rates with little or no down payment required. The loan guaranty can be used to:

• buy a home, a manufactured home, or a condominium
• buy a lot for a manufactured home
• build, repair or improve a home (including energy efficient improvements)
• refinance an existing loan

For more information, please call or stop by our office.