Which term denotes a loan guaranteed by the Department of VA?

Study for the Real Estate Test. Engage with flashcards and multiple-choice questions, each question provides hints and explanations. Prepare thoroughly for your real estate exam!

Multiple Choice

Which term denotes a loan guaranteed by the Department of VA?

Explanation:
The guarantee comes from the Department of Veterans Affairs, backing a portion of the loan to reduce lender risk. The term that explicitly signals this guarantee is a DVA guaranteed loan (DVA stands for Department of Veterans Affairs). This wording shows both the guarantor and the guarantee, distinguishing it from other programs like FHA loans, which are insured by FHA, or from the shorthand VA loan, which doesn’t explicitly emphasize the guarantee.

The guarantee comes from the Department of Veterans Affairs, backing a portion of the loan to reduce lender risk. The term that explicitly signals this guarantee is a DVA guaranteed loan (DVA stands for Department of Veterans Affairs). This wording shows both the guarantor and the guarantee, distinguishing it from other programs like FHA loans, which are insured by FHA, or from the shorthand VA loan, which doesn’t explicitly emphasize the guarantee.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy