Administration of dva

In 1944, Congress passed the GI Bill of Rights. This bill provided many benefits to veterans, including provisions guaranteeing real estate loans to veterans. The loan Guarantee Division of the Department of Veterans Affairs is responsible for administering the program. Generally, the DVA operates like the FHA. One difference is that the DVA guarantees a loan, and while the FHA insures a loan, and while the FHA insures the whole loan, the DVA guarantees a portion of it. As of 2002, the maximum guarantee on a loan is $60,000. The exact amount of guarantee to lenders in case of borrower default is based on the loan amount, as follows:

Loan Amount Under $45,000 $45,000 to $56,250 $56,251 to $144,000 $144,001 to $203,000 $203,001 to $240,000

Guarantee to lender 50% of the loan $22,500 40% of the loan 25% of the loan $60,000

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