Under the VA-guaranteed Home Loan program, VA does not make loans to Veterans and Service members; VA-guaranteed loans are made by private-sector lenders like First Equity Home Loan, Inc., and the guaranty amount is what VA could pay a lender should the loan go to foreclosure due to a downturn or whatever. This allows us to lend to 100 percent appraised value with less risk.
- Terms from 10 to 30 years
- Very competitive interest rates
- Many alternatives not offered with traditional mortgage products
- Did we mention zero down Purchase and 100 % LTV (loan to Value) Refinancing?
VA-guaranteed home loans have no maximum loan amount, only a maximum guaranty amount, which is set in law. However, due to secondary market requirements, lenders typically require that the VA guaranty, plus any down payment provided by a Veteran, total 25 percent of the loan amount. As a result, an amount equal to four times VA's maximum guaranty amount is customarily referred to as a "loan limit". Loans below the loan limit or less are typically available to Veterans with no down payment while loans for more than the loan limit generally require down payments. VA's maximum guaranty amounts are established annually, and vary, depending on the size of the loan and the location of the property. Conventional loan limits move to 424,100 dollars jan 1st, 2017. This might determine what kind of loan you choose.