New Jersey VA Loans
What is a VA – Guaranteed Home Loan?
They are Loans made by private lenders (banks, savings and loans, and mortgage companies). There loans are made to eligible veterans for the purchase of a home for themselves and their families. The home you purchase must be a 1-4 family house that you will occupy. Investment property purchases are not allowed. Again, the home must be for your own personal use.
VA does not actually make any loans. The Veterans Administration only guarantees the loan. They guarantee the lender who makes the loan will not lose money if the payments are not made. This encourages lenders to make loans to veterans with more favorable terms, such as 100% financing, low rates, low fees, and reduced closing costs. The guarantee is not automatic. You must still qualify for the loan based upon the lending guarantee guidelines set by the VA. This insures they are only backing qualified borrowers and lessens their risk of loss.
What can this Loan be used for?