<P> Despite a great deal of confusion and misunderstanding , the federal government generally does not make direct loans under the act . The government simply guarantees loans made by ordinary mortgage lenders ( descriptions of which appear in subsequent sections ) after veterans make their own arrangements for the loans through normal financial circles . The Veterans Administration then appraises the property in question and , if satisfied with the risk involved , guarantees the lender against loss of principal if the buyer defaults . </P>
<P> Despite a great deal of confusion and misunderstanding , the federal government generally does not make direct loans under the act . The government simply guarantees loans made by ordinary mortgage lenders ( descriptions of which appear in subsequent sections ) after veterans make their own arrangements for the loans through normal financial circles . The Veterans Administration then appraises the property in question and , if satisfied with the risk involved , guarantees the lender against loss of principal if the buyer defaults . </P>
who provides the direct funds for a loan guaranteed by the federal veterans affairs
who provides the direct funds for a loan guaranteed by the federal veterans affairs
ordinary mortgage lenders
ordinary mortgage lenders