A home loan program steeped in history continues to make it. The United States Department of Veterans Affairs, known as the VA, backed an all-time record 631,151 loans in fiscal year 2015, eclipsing the previous high-water mark set just
two years prior.
More and more veterans are using these flexible, $0 down loans to crack the housing market during a time of tight credit and limping wages. A good year for the industry was a great one for military buyers: VA purchase loans surged
19% year over year, according to recently released figures.
The outlook for this 71-year-old benefit program is bright, too. The population of younger veterans is expected to increase 36% over the next five years, according to a recent Deutsche Bank analysis. To be sure, VA loans aren’t the right
fit for every veteran. But they’re also no longer on the sidelines. In fact, in many ways, these government-backed loans are arguably the most powerful residential loan product on the market.
Greater awareness of the benefits—and the surprising safety—of VA loans has propelled market share in recent years. Credit guidelines for VA loans are generally more forgiving compared with conventional loans, and VA buyers don’t have
to spend years scraping up a down payment. That one-two punch helps make homeownership possible for scores of veterans and military families who might otherwise miss out. The average VA buyer has about $7,000 to $8,000 in assets, according
to the VA. These loans also carry no mortgage insurance and limit what buyers can pay in closing costs.
Please consider The Myers Team your resource for all things real estate. We have over 30 years of real estate experience, specializing in the Montgomery County area. If you are refinancing, want a recommendation, need a service provider or just have a home related question, please give me a call at 301-910-9910 or email me at firstname.lastname@example.org.