VA Home Loans Still Going Strong

August 26, 2010 - In our current economy, hearing good news about the housing industry seems completely foreign. Those mortgage loans backed up by the Department of Veterans Affairs (VA), however, not only the lowest rates for serious delinquency, but the lowest amount of foreclosures across the entire housing industry. VA Secretary Eric Shinseki credits this success to both the VA's loan professionals and the responsible actions of the veterans taking the loans.

The VA's Home Loan Guaranty Program has backed loans for 1.3 million homes. The program allows borrowers to give low or no down payments and protects the bank making the loan protection should the borrower not repay the loan. It's not just veterans who are eligible for the program, it also applies to active-duty service members and qualifying surviving spouses.

The VA Home Loan Guaranty Program is strong because of the dedication of nationwide loan servicers. Those servicers work to ensure veterans not only get homes, but stay in them. Consequently, across all loan types including prime loans, the VA's foreclosure rate has been the lowest for the last 8 quarters. Further, for the last 5 quarters, they have had the lowest serious delinquency rate. 

VA loan specialists take a hands-on approach. They are willing to step in and help veterans when they need help retaining their home. This includes aiding them in figuring out different repayment plans, loan modifications, and even forbearances. If keeping their home isn't possible, VA loan specialists can help with sales and deed-in-lieu- of foreclosure. Both of these options are better for the veteran than being foreclosed upon. The VA is doing their share to make sure their veterans are taken care of and their program thrives.