VA Guaranteed Home Loan

The loan is made by a lender, such as a mortgage company, savings and loan or bank. VA's guarantee on the loan protects the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms. The amount of guaranty on the loan depends on the loan amount and whether the veteran used some entitlement previously. With the current maximum guarantee, a veteran who hasn't previously used
the benefit may be able to obtain a VA loan up to $240,000 depending on the borrower's income level and the appraised value of the property. The local VA office can provide more details on guaranty and entitlement amounts.

Note: Although the veteran may be approved for a VA home loan guarantee, the veteran still needs to have a good credit rating to obtain a loan from a lending institution, such as a bank or credit union. Contact State Veterans Service Offices listed in appendix A for more information on loans