The VA's home-purchase financing program is now at record levels, and new loans to buy houses have more than doubled since 2007. And, as I mentioned in my newsletter article a few weeks ago, financial institutions are also partnering with non-profit groups to help veterans, even giving away homes to some.
I'm happy to be in an industry that is increasingly supporting our returning veterans. A recent Seattle Times article explains why VA loans are housing's hot product lately. In fact, since 2011, VA-backed mortgages have increased from 3 percent of total home-purchase mortgage activity to a roughly 7 percent share!
Here are the three main reasons for this increase:
- VA-guaranteed mortgages come with terms that no other financing source can match – zero down payment and flexible, generous credit underwriting which emphasizes the individual applicant.
- Lenders increasingly recognize VA loans as good business. Despite having features traditionally connected with high risks, VA's default rates are as good as or better than "prime" conventional market performance.
- Demand is booming. There are now an estimated 22 million veterans in this country, many of them with eligibility for VA loan benefits.
Read the original article on The Seattle Times website.