Veterans Administration
guaranteed home 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 or a later owner 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.
There is no
maximum to a Veterans Administration guaranteed home loan but
lenders will generally limit VA loans to $240,000. This is because
lenders sell VA loans in the secondary market, which currently
places a $240,000 limit on the loans. For loans up to $240,000,
it is usually possible for qualified veterans to obtain no down
payment financing.