Big banks and mortgage companies are stepping up efforts to help returning vets get affordable housing by advertising the benefits of VA loans as well as donating hundreds of homes mortgage-free to vets.
The Department of Veterans Affairs’ home loan program has soared to record levels, issuing new mortgages at more than double the pace of 2007. VA-backed mortgages represent about 7 percent of total home-purchase mortgage activity now, up from about 3 percent in 2011, according statistics from the Mortgage Bankers Association. VA-guaranteed mortgages come with zero down payment and flexible credit underwriting. The interest rates are competitive too.
“In an era of extremely tight credit and underwriting in most segments of the marketplace, the VA program looks like an extended hand for creditworthy vets who don’t have large amounts of money to put down on a home purchase or are transitioning into regular employment in the mainstream economy,” the Los Angeles Times notes.
Source: “VA, Lenders, and Nonprofits Mobilize to Help Veterans on the Home Front,” Los Angeles Times (Oct. 26, 2014)