Posted by Jim Kennedy - Houston, TX on January 18, 2001 at 22:41:52:
Jim,
Minor correction. The VA does not ?insure? loans, they ?guarantee? loans. FHA loans are insured, VA loans are guaranteed. It is a fairly minor distinction since the end result is pretty much the same.
Hope this helps.
Best of Success!!
Jim Kennedy,
Houston, TX
VA Guaranteed Loans - Posted by Scotty Boy
Posted by Scotty Boy on January 16, 2001 at 22:42:34:
I understand that VA loans can be sold via CFD with no violation. What about loans that are VA guaranteed but not an actual VA loan?
Re: VA Guaranteed Loans - Posted by Jim IL
Posted by Jim IL on January 17, 2001 at 24:53:55:
Scotty Boy,
They are the same thing, sort of.
The loan is not made by the V.A., it is simply insured by the V.A.
Just like an F.H.A. loan is not a home loan made to the buyer by HUD.
This FHA loan is simply insured against default for the lender, by the FHA.
If a buyer defaults on a loan that is insured by the VA or FHA, they can make a claim and get there money back, while giving the home to the VA or the FHA.
HTH,
Jim IL