(TO) Guarantee (a Loan)

To agree to Indemnify the holder of a loan all or a portion of the unpaid Principal balance in case of Default by the borrower. See also Va Mortgage Loan.
Example: Abel takes out a Va Mortgage Loan to purchase a home. The Veterans Administration guarantees the loan. In case foreclosure is threatened because Abel fails to make the payments, the VA will reimburse the lender for losses up to the amount guaranteed.