VA FAQ #6 What is a VA Direct Lender?

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Mortgage and Lending with VanDyk Mortgage - VA, FHA, Conventional, VA Jumbo, Jumbo, Purchase Loans, & Refinance, Direct Lender NMLS 220268 / 3035
VA FAQ #6  - What is a VA Direct Lender?
 
What exactly is a VA Direct Lender?    Many VA Home buyers and Veteran Home owners, as well as Realtors ask this question.    There is often a misconception that the VA (Veterans Administration) underwrites and approves VA Loans for our Veterans, and that the process is time consuming. 

A VA Direct Lender does not approve your loan direct with VA, nor does the VA Direct Lender represent the VA.   They originate, underwrite and fund VA Loans per VA guidelines as a VA Direct lender, and then submit to VA for certification of the VA Guaranty.

The Veterans Administration (VA) does not make loans.   The VA guarantees loans made by private lenders.   The VA does not underwrite, approve, or fund loans.   Private lenders like VanDyk Mortgage make, underwrite, and fund VA Loans per the guidelines that the VA sets for us, then sends them to the VA after the loan is funded and complete for certification of the eligibility for VA Guaranty.

The VA Guarantees loans while FHA Insures loans.    This comes down to semantics.   They both share the risk with lenders so that Homeowners can get affordable FHA or VA Financing.

A Direct Lender is a Lender that originates, underwrites, and funds loans in their own name with their own monies, also known as a Mortgage Banker.   The loans may be sold at a later time (weeks, months, or years), or securitized into GNMA Mortgage Backed Securities.   Both small mortgage banks and the big banks practice these methods.   Very few banks hold loans for their entire duration.

It is to your advantage as a consumer or Realtor to work with an experienced VA Direct Lender vs a broker, as we have more experience in writing quality VA Loans, can work faster than a broker, and offer competitive terms.  

VanDyk is  a Direct Lender offering VA Loans and VA Jumbo Loans for Purchase, IRRRL Streamline Refinance,  and Refinance of non-VA loans into a safe, secure VA Loan. 

This is part 6 of our VA FAQ series for Frequently asked VA Loan Questions.    FAQ = Frequently Asked Questions, and when it comes to VA Loans, we get plenty of questions and we have the answers for you.   We have been making VA Loans since 1987 and are a Direct Lender offering both VA Loans and VA Jumbo Loans for the Purchase or Refinance of your Primary Home.   Please give us a call to get help with your VA Loan or VA Jumbo Loan questions, and see if you qualify for a VA Home Mortgage - 866-900-2342 toll free direct,  or contact us online at  VanDykFunding.com .

We offer VA Loans, VA Jumbo Loans (aka VA High Balance Loans) for purchase, refinance and VA IRRRL streamline thoughout our service area:  California, Colorado, Georgia, Indiana, Massachusetts, Michigan, Mississippi, Tennessee, Texas, Virginia, Washington and Wyoming.   Give us a call to get started today - 760-752-4480.

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Brian Skaar

VA, Jumbo, FHA & Conv Direct Lender (760) 752-4480
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