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Mortgage Finance > Mortgage > VA Loan
VA Loan
The VA loan began in 1944 through the original Servicemen's Readjustment Act,
also known as the GI Bill of Rights.
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 or a later owner fails 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.
The Veterans Administration does not normally act as a lending agent. Instead,
the VA is in the business of guaranteeing the loans of veteran. In most cases,
the VA offers a guaranty to those who meet the requirements, the first of which
include a good credit rating.
VA guaranteed loans are often made without any downpayment at all, and
frequently offer lower interest rates than ordinarily available with other
kinds of loans.
The Department of Veterans Affairs (VA) acquires properties as a result of
foreclosures on VA guaranteed loans. These acquired properties are marketed
through a property management services contract with Ocwen Federal Bank FSB,
West Palm Beach, Florida.
The properties are listed by local listing agents through local Multi Listing Systems (MLS). A list of properties for sale may also be obtained from Ocwen's website at www.ocwen.com/ .
If you are interested in buying a VA-acquired property when it is listed for
sale by Ocwen Federal Bank FSB, please contact a local real estate broker of
your choice to see the property.
It's important to know that a VA home loan guaranty is available only if the
veteran has the income to handle house payments. A VA loan guaranty is not an
automatic benefit.
Discharge from Military services - The nature of your discharge can affect your
eligibility for a VA loan. The certificate of eligibility process gets
complicated for veterans separated from the military with a discharge other
than honorable. In these cases the VA checks to see if the discharge was
classified dishonorable.
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