Have Veterans Created A Housing Boom?
In spite of fewer “boots on the ground” abroad there is a major concentrated effort at home to help veterans in the housing market.
The Department of Veterans Affairs’ VA home-loan program has long been considered a secondary mortgage product for veterans. The main feature being no down payment. This is not the case any longer. Today’s veteran can expect a very competitive loan program even compared to competing private and other government mortgage options.
According to the Washington Post, the VA’s home-purchase program is now at record levels. New loans to buy houses have more than doubled since 2007. VA home loans now represent roughly a 7 percent share of all mortgage activity in the marketplace according to the Mortgage Bankers Association. For sales of newly built homes, the VA share is much larger at 14.5 percent as of September 2014.
So what is making a VA home loan the hottest mortgage product? Several reasons…
- First of all it is hard to match what VA-guaranteed mortgage come with: ZERO DOWN PAYMENT.
- VA does a great job at least on the lending side to be flexible with credit underwriting conditions and provides a common sense approach to the loan approval process.
- VA mortgage interest rates are very competitive.
- Maximum loan amounts go well into the jumbo loan amount range.
- Lenders, especially lenders I represent, recognize VA loans as good business. VA’s default rates are as good or better than “prime” conventional marketing performance and far superior to FHAs.
- There is high demand for VA loans. There are no an estimated 22 million veterans in the USA, many of them with eligibility for VA loan benefits.
- There are also many financial institutions partnering with nonprofit groups to help veterans with housing needs. Organizations such as Operation Homefront, the Military Warriors Support Foundation, HomeStrong USA and Purple Heart Homes have given away hundreds of houses acquired through donations from many major banks and trusts. Also if a veteran would like a pet with the new house, you cannot forget about this remarkable nonprofit organization, Pets for Patriots.
If you are in the market to purchase a home I hope you will contact me (Jim Catalano). I can be reached at (214) 770-1499 or email me at firstname.lastname@example.org. You can always get prompt service by completing this online form.