
Originally Posted by
Alison
The VA does not issue the loan, they merely back the loan, so that they repay the lender if you default on the loan, and then you are in debt to the VA instead. There is also a VA funding fee if you choose to use the VA to back your loan, which will add money onto your mortgage. I believe it is 1% extra. You do still need to have your credit approved to get a loan though. The requirements are significantly less than a traditional loan, but because of all the foreclosures recently, they have tightened up restrictions. Me and my husband can't get one at the moment, because 2 of our credit cards are at their limit.
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