After spending years in the background of mortgage programs, VA loans have been getting the well needed attention that they deserve. Overall, 2014 has been a successful year for VA loans as more homebuyers turned to them for financing.
Back in June, the VA home loan program celebrated its 70th anniversary. The program started in 1944 as part of the Servicemen’s Readjustment Act, also known as the GI Bill. Over these many years, the VA has helped servicemembers, Veterans and eligible surviving spouses become homeowners by providing a loan guaranty benefit, as well as, other housing programs. It has been their commitment to help eligible borrowers buy, build, make repairs, make changes and retain a home for their personal use.
In 2014, veterans and active military members have turned to the VA loan program in record numbers. According to the Department of Veteran Affairs, VA home purchases rose approximately 13% year over year during the VA’s fiscal year October 1, 2013 through September 30, 2014. During this period, the VA guaranteed its 21 millionth loan for veterans which was a milestone for the program.
Why the Rise in Popularity of VA Loans
As stricter regulations have become normal for other mortgage products, such as conventional loans and FHA mortgages, it has become more difficult for the average homebuyer to make a home purchase. On the other hand, VA loans have continued to offer eligible borrowers no down payment loans, competitive mortgage rates, easy and quick refinances along with many other benefits.
A VA loan also protects a homebuyer with their VA appraisal and inspection requirements. While these may be stricter than other mortgage products, it helps to give the homebuyer the peace of mind they need regarding the condition of the property they are purchasing.
Lenders who offer VA loans are able to be more competitive with mortgage rates since the VA guaranty promises lenders that they will repay 25% of the loan amount (up to $417,000 in most areas of the country and more in high cost areas) if the loan defaults. This benefits both the lender and the homebuyer.
As it continues to be VA’s intention to offer the VA home loan program to its eligible borrowers, it is inevitable that the success of the program will continue to grow. Each year, more and more VA borrowers have and will continue to take advantage of one of their best benefits.
Finding a VA Lender
Approved VA lenders are available to provide borrowers with additional information. Nationwide VA lenders can assist you without the need to physically visit a brick and mortar office. By choosing a knowledgeable lender who specializes in VA loans, your questions will be answered and you will be offered the best competitive VA loan available.
My loan process was very easy and quick. Not to mention a great loan rate. I couldn't be happier!
Capt Sam T. - US Army
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