Posted by RR Smith on February 07, 2000 at 18:21:08:
The VA Loan guarantee is supplied by the VA to guarantee that the loan payments will be made to the bank/mortgage company that makes the loan. It is transferable but the people that assume the loan (guess what?) have to requalify for the mortgage with the VA and the people that wrote the mortgage?(even though the VA GUARANTEES THE PAYMENTS). So my point is that it truly is not a type of mortgage per se but a GUARANTEE WITH PROVISIONS (good provisions, low down, no per payment penalty, etc.)on top of another mortgage that can be ?packaged? along with several hundred other mortgages and sold as a group to investors as a commodity. After you sell your loan guarantee the VA will happily issue you another one and you can sell that one too (if your into pain and suffering)etc. etc.