Texas Home Loan
Insider Angelo Christian

VA guaranteed loans are loans made by private lenders such as banks,
savings and loans, or mortgage companies to eligible veterans for the
purchase of a home that must be for their own personal occupancy.

A veteran applies with a lender and once approved, VA will guarantee a
portion of it to the lender. This guarantee protects lenders against loss in
the event of foreclosure, up to the amount of the guaranty, and allows a
veteran favorable financing terms.

The Veterans Benefit Act of 2004 changed the maximum guaranty
amount to 25% of the Freddie Mac Conforming loan limit.
 Eg., the guaranty amount for 2009 is $104,250 which is based on the
conforming limit of $417,000: $417,000 x 25% = $104,250