In my series of questions and answers about VA Guaranteed Home Loans, I guess it is time to explain exactly what a VA Guaranteed Home Loan is and how they differ from other methods of financing in Eugene/Springfield Oregon.

VA Guaranteed Home Loans are made by private lenders, like banks and wholesale lenders, savings and loans (if you can find one of those these days) and mortgage companies. The Department of Veterans Affairs guarantees a percentage of the loan against loss if the veteran fails to repay the loan (similar to mortgage insurance) for the lender that makes the loan, the VA does not make the loan. This guarantee replaces the down payment normally required by the lender when financing a home loan.

Please note, just because you are eligible for a VA Guaranteed Home Loan, does not mean you will receive one. VA loans are still subject to credit, income and collateral underwriting. Most lenders in today’s lending environment require a minimum of 620 middle credit score even though VA does not have a minimum credit score requirement. VA cannot compel a lender to make a loan that would violate their lender policies.

VA loans are an excellent way to get financing with less than 20 percent down payment, if you qualify as a vet and for the loan. Give me a call and let’s see if you qualify. Reach me at 541-342-7576/541-221-3455 Cell or e-mail me.

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