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The Current State of Veteran Home Loans

The Current State of Veteran Home Loans

Veteran Home Loan Programs Growing in Popularity, But Still Underutilized.

The underutilized veteran home loan program is one of Americas best kept secrets, but the competitive rates and numerous perks of the program have participation on the rise as rates for other programs increase. Even still, a lot of past military members don’t realize the benefits of veteran home loan programs.

What is VA Lending?

VA Lending is a program offered by the Department of Veterans Affairs intended to help veterans acquire affordable housing. Since the program began in 1944, more than 20 million veterans have secured VA loans.

For qualified veterans, a veteran home loan has numerous advantages over other loan types: no down payment, no mortgage insurance, and very low interest rates, making them in many circumstances the most competitive loans available.

To be eligible for a Veteran Home Loan, borrowers must have suitable credit, sufficient income for the size of their loan, at least 181 days of active service (for post-Vietnam vets), and a Certificate of Eligibility.

VA lending is on the rise

VA home loan volume has skyrocketed more than 370% since 2007 due to their affordability and an increase in knowledge about veteran home loans. In 2013, the VA approved more than $500 million in loans to more than 2,000 veterans.

Why the growth? There are many reasons, but probably the most significant is the limited number of low down payment options out there. Products that do offer low down payments, like loans offered by the Federal Housing Administration have seen increased pricing due to higher mortgage insurance premiums while Veteran Home Loans have remained steady.

There is still room to grow

There are many misconceptions about VA home lending, leading to underutilization by both veterans and lenders. Many veterans are not thoroughly educated on the availability of VA lending. Less than 12% of veterans and active-duty military personnel with mortgages have a loan secured by the VA. Further, plenty of loan officers carry misconceptions about requirements or availability of these programs. Many loan officers neglect to even ask borrowers if they are veterans.

At Blue Water Mortgage, we are eager and willing to help those who have dutifully served our country the opportunity to build a life here in NH. We are proud to offer these loans to qualified veterans of the armed services. If you are a veteran and would like to know more, please contact us today.

Roger Odoardi

Roger is an owner and licensed Loan Officer at Blue Water Mortgage. He graduated from the University of New Hampshire’s Whittemore School of Business and has been a leader in the mortgage industry for over 20 years. Roger has personally originated over 2500 residential loans and is considered to be in the top 1% of NH Loan Officers by leading national lender United Wholesale Mortgage.

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