A 3rd party broker that specializes in mortgages guaranteed by the US government

VA Loan Guarantee

va guarantee loan“The goal after the war should be the maximum utilization of our human and material resources.” -President Franklin D. Roosevelt, upon signing the original GI Bill

1,076,245 Americans were killed or wounded during World War Two, a conflict that called for countless Americans to make a multitude of sacrifices, for many this even meant sacrificing their lives. Done in the name of freedom, liberty and a better world, these service members asked for nothing in return. As the war came to a close, our Government wanting to demonstrate the gratitude of the entire world enacted the original GI Bill. The original bill offered veterans numerous benefits, including educational, vocational and unemployment pay. The most advantageous offering from the original GI Bill was the home loan guarantee. Prior to the war, homeownership was out of reach for many Americans, between 1944 and 1952, this loan program enabled 2.4 millions the ability to become first time mortgage holders.

There are many misconceptions about the VA home Loan program, among the most blatant is what is meant by the phrase “VA Loan Guarantee”?

The Department of Veterans Affairs does not actually issue home loans, instead it insures them. All VA loans are protected against originator or investor loss in the event of a borrower default. The amount guaranteed by the VA differs according to the loan limits established by the location of the property and with the size of the loan. 25 percent of the principal loan up to $417,000 or 125 percent of the average single family home price in the area the property is listed in will be definitively guaranteed by the VA.

The VA-guaranteed loan can be used to purchase a home to be used as a primary residence or refinance an already existing loan. The function of the VA guarantee is to ensure financing for eligible applicants. Because the loan is insured veterans are subjected to reduced underwriting requirements in qualifying for the loan. Of further benefit is the absence of a down payment stipulation.

Despite the presence of the lender guarantee, it is important for borrowers to understand that the VA does not guarantee that each veteran or service member entitled to the VA home loan benefit will automatically receive a VA home loan. The reason for this is that all borrowers must qualify and be able to afford the loan payments. The VA Loan Guarantee assigned to each borrower may be revoked in the event that there is outstanding federal debt in delinquency.

Since the inception of this program some 18 million veterans have used this loan program to become homeowners.


To apply for a VA loan today, contact VA Home Loan Centers!