However as of 1993, VA mortgages rates are no longer set by the Department of Veteran Affairs. VA rates are now determined by the competitive market rates. The department of Veteran Affairs has established guidelines that spell out the number of active duty days required fro an individual to qualify for a loan. The VA has set limits for the loans they guaranteed. Because the amounts are subject to review, you should check with your realtor or loan officer.
Points represent the cost of money charged by the lender.
Generally, points are paid on all methods financing. Either the buyer or the seller may pay the points. This means the decision about who pays the points is negotiable between buyer and seller and should be understood when you sign an agreement.