Surging VA Loan Program Remains Safest Lending Option Available

The VA Loan Guaranty program is booming.

by Chris Birk
www.veteranstoday.com

The Department of Veterans Affairs guaranteed almost 360,000 loans in FY11, a 14-percent jump from FY10. Since FY07, when the VA backed just over 133,000 mortgages, the number of these flexible, government-backed loans has soared an astounding 168 percent.
That’s an incredible increase spurred in no small way by the credit crunch that followed the subprime mortgage collapse. Military borrowers are coming in droves to the VA loan program, which features more flexible credit and underwriting requirements and no down payments or private mortgage insurance.
What’s more, VA loans have emerged as the safest loan product on the market, despite the fact that about 90 percent come with no money down. VA loans have had the lowest rate of foreclosure for the last 14 quarters and the lowest rate of serious delinquency for the last 11 quarters for any loan option, even prime loans, according to the Mortgage Bankers Association.
The VA acknowledged these key developments in a news release issued this week.
“The continued strong performance and high volume of VA loans are a testament to the importance of VA’s home loan program and a tribute to the skilled VA professionals who help homeowners in financial trouble keep their homes,” Secretary of Veterans Affairs, Eric K. Shinseki said in the release.
The VA has made it a mission to help keep veterans in their homes. The agency’s loan specialists work with borrowers and servicers to help pursue options like repayment plans and loan modifications. Veterans struggling with their mortgage payments can contact a VA foreclosure specialist at 877-827-3702.
“We are committed to making even more veterans and service members aware of this important benefit and delivering the assistance they deserve when financial difficulties arise,” said VA Under Secretary for Benefits Allison A. Hickey.