Guaranteed Home Loans for Veterans

The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is competitive with the rate charged on other type of mortgage loans. For VA housing loan purposes, the term "veteran" includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses.

What VA Does For The Home-Buying Veteran

VA guarantees part of your loan—which helps you to get a VA loan featuring:

  • No downpayment (unless required by the lender or the purchase price exceeds the reasonable value as determined by VA); and
  • Competitive interest rate and the flexibility of negotiating interest rates with the lender;
  • Assurance that you can pay off all or part of the loan in advance without penalty.
  • VA appraises the house to determine its reasonable value in the housing market at the time the appraisal is made.
  • VA requires compliance inspections in most cases on proposed new construction to see that the house:
    • Meets accepted standards of good construction.
    • Conforms to the plans and specifications on which VA's appraisal is based.
  • VA will try to assist you in getting your builder to correct any defects about which you may have valid complaints.

What VA Does Not Do

VA does not have the legal authority to:

  • Act as your architect. It does not supervise construction of the house you buy.
  • Guarantee that the house is free of defects.
  • Act as your attorney. It cannot provide you legal services if you run into trouble in buying or constructing your home. of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.
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