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What is a VA Guaranteed Home Loan?

Published 08/03/2012 02:15 PM   |    Updated 06/27/2017 08:08 AM
What is a VA Guaranteed Home Loan?
VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.