VA Home Loans Program
This home buying season has seen limited housing inventory in some areas, rising interest rates and increasing prices. However, the VA Home Loan Guaranty program continues to offer cost-saving benefits for Veterans, Service members, and some surviving spouses.
The problem is—not all who are eligible are aware of the Home Loan Program, and its benefits. Although the program has experienced record-breaking loan volume in the past several years, there are still a number of areas with high Veteran population, but relatively low rates of VA-guaranteed loan utilization. VA wants to ensure Veterans, Service members, and their families know about the Home Loan Program and how VA strives to deliver its benefits in a timely, effective, hassle-free, ever-improving manner. It’s one of the best deals out there!
The VA Home Loan Program has guaranteed over 23 million home loans worth in excess of $2 trillion.
Created as a provision of the original GI Bill of 1944, VA’s Home Loan Guaranty Program: :
• Backs at least 25% of most loans, which eliminates the need for down payment and Private Mortagage Insurance (PMI);
• May be used while on active duty or after six years of National Guard or Reserve service;
• May be used more than once.
• Has historically lower interest rates and costs
• Requires minimum property standards which allows the Veteran comfort in a home that is safe, sound and sanitary
• Finances up to $6,000 in energy efficiency improvements (e.g. solar heating and cooling, insulation, weatherizing, furnace replacement) through a VA-guaranteed purchase or refinance loan. Provides Direct Loan financing to Native American Veterans who wish to reside on Tribal land through VA’s Native American Direct Loan (NADL) program, established in 1992.
For information visit homeloans.va.gov or call 1-877-827-3702.
Over 1,500 lenders nationwide can issue VA Home Loans, and the VA currently oversees the servicing of over 3 million active home loans. VA Home Loan Guaranty Program scores well against private and government loan programs with the lowest foreclosure inventory rate for the past 40 quarters. Last year alone, VA prevented over 96,000 foreclosures, saving taxpayers $2.7 billion.
VA records show that not all Veterans are taking full advantage of the program. The areas with high Veteran population but relatively smaller VA loan utilization include:
• Chicago, IL
• Orange County, CA
• Dallas, TX
• Seattle, WA
• Detroit, MI
The other areas where VA-guaranteed loan volume is highest are:
• Phoenix, AZ
• San Antonio, TX
• Colorado Springs, CO
• San Diego, CA
• Las Vegas, NV
• Riverside, CA
• Tacoma, WA
• Tampa, FL
• Houston, TX
• Clarksville, TN
• Jacksonville, FL
• Virginia Beach, VA
• Honolulu, HI
• Tucson, AZ
• Los Angeles, CA
