Ever wanted to know how VA Home Loans Work?
Many Veterans have no idea how VA Home Loans work, and if I am being honest, for the longest time I had no idea either.
The information posted in this video will help the Veteran, as well as the Active Duty Service Member, better understand how their VA Home Loan works.
Few people understand that the VA does not lend the money on a VA Home Loan the actual bank, or lender does.
The VA’s role is simply to insure or guarantee the VA Home Loan, allowing the Veteran to purchase a home for as $417,000 in most counties, and higher is some across the nation.
So let’s take a look at that a little bit more more in detail. If the Veteran were to purchase a $417,000 home with his VA Home Loan that VA would guarantee or insure $104,250 of the loan.
This is why lenders like VA Home Loans, because it reduces the risk associated with the loan for the bank on VA Home Loans.
Now that we understand that in order for Veterans to use VA Home Loans they must have a copy of their certificate of eligibility. However, just because they have a copy of their certificate of eligibility it does not mean that their VA Home Loan is ready to be used.