The Department of Veterans Affairs (VA) has assisted veterans with
homeownership since 1944, when Congress enacted the loan guaranty
program to help veterans returning from World War II purchase
homes. The loan guaranty program assists veterans by insuring
mortgages made by private lenders, and is available for the
purchase or construction of homes as well as to refinance existing
loans. The loan guaranty has expanded over the years so that it is
available to (1) all veterans who fulfill specific duration of
service requirements or who were released from active duty due to
service-connected disabilities, (2) members of the reserves who
completed at least six years of service, and (3) spouses of
veterans who died in action, of service-connected disabilities, or
who died while receiving (or were entitled to receive) benefits for
certain service-connected disabilities. Under the loan guaranty,
the VA agrees to reimburse lenders for a portion of losses if
borrowers default. Unlike insurance provided through the Federal
Housing Administration (FHA) insurance program, the VA does not
insure 100% of the loan, and instead the percentage of the loan
that is guaranteed is based on the principal balance of the loan.
Veterans who enter into VA-guaranteed loans must pay an up-front
fee based on a number of factors that include the type of loan
entered into (for example, purchase or refinance), whether service
was active duty or in the reserves, whether the loan is the first
or subsequent VA loan a borrower has entered into, and the amount
of down payment. Borrowers are not required to make a down payment
for a VA-guaranteed loan, but the up-front fee is reduced if there
is a down payment of 5% or more. Most borrowers (88% in FY2011) do
not make a down payment. In addition to guaranteeing loans from
private lenders, the VA also makes direct loans to borrowers in
certain circumstances. The original VA direct loan, which was
targeted to veterans in rural areas, is now available only to
veterans or service members with certain service-connected
disabilities. Another direct loan program, originally enacted as a
demonstration program in 1992, serves Native American veterans,
including veterans living in American Samoa, Guam, and the
Commonwealth of the Northern Mariana Islands. In addition, the VA
may enter into direct loans in cases where a borrower is delinquent
or defaults on a VA-guaranteed loan. The VA may either acquire a
loan from a lender and continue servicing itself (called "acquired
loans") or, in cases of foreclosure, the VA may purchase the
property and resell it. In these cases, the VA may enter into a
loan with a purchaser whether he or she is a veteran or not (called
"vendee loans"). A third way in which the VA provides housing
assistance to both veterans and active duty Service members is
through the Specially Adapted Housing (SAH) Program. Through the
SAH program, veterans with certain service-connected disabilities
may obtain grants from the VA to purchase or remodel homes to fit
their needs. The amount of a grant depends on the disability, and
in some cases grants can be used to modify the homes of family
members with whom veterans or service members are staying. This
report discusses these three types of housing assistance-the loan
guaranty program, direct loan programs, and Specially Adapted
Housing program-their origins, how they operate, and how they are
funded. The report also has a section that discusses the default
and foreclosure of VA-guaranteed loans.
General
Is the information for this product incomplete, wrong or inappropriate?
Let us know about it.
Does this product have an incorrect or missing image?
Send us a new image.
Is this product missing categories?
Add more categories.
Review This Product
No reviews yet - be the first to create one!
Welcome to Loot.co.za!
Sign in / Register |Wishlists & Gift Vouchers |Help | Advanced search
