Mortgage Lending: 9.8.8 VA Loans
Department of Veterans Affairs (VA) insured or guaranteed loans may have adjustable rates, but only if they comply with detailed requirements.365 The rates must be tied to an interest rate based on Treasury bills, which is specified in the regulation. Interest rate adjustments must occur annually, except that the first may occur no sooner than thirty-six months after the date of the borrower’s first mortgage payment. The borrower’s monthly payment amount must be adjusted to reflect interest rate changes.