- 82 percent of VA loans don’t require a down payment.
Lenders typically require a down payment as a safety deposit, but because of the VA loan guaranty, the majority of VA loan homebuyers enjoy the benefit of no down payment or private mortgage insurance.
- Half of all VA loans are refinance loans.
The VA home loan program offers two types of refinancing for those with existing VA loans and for those who want to refinance an existing mortgage into the VA loan program. A VA refinance does not require income documentation or an appraisal.
- The average VA borrower has less than $9,000 in assets.
Veterans don’t need a mountain of cash in their bank account to secure a loan.
- Veterans who’ve experienced bankruptcy or foreclosure can still qualify.
There’s usually a two-year waiting period, although there are situations where a veteran who has experienced a bankruptcy can be eligible for a home loan after just a one year.
- VA loan volume has surged since the housing crisis.
Three of the last five years have set new records for VA loan volume, including last year’s all-time record 707,000 loan guaranties. Veterans and military buyers have turned to this benefit in waves because of its huge benefits, from no down payment to more flexible credit underwriting. VA loans have a unique requirement – residual income – that helps keep borrowers prepared to meet their obligations.
Source: Home Point Financial Corporation
This item appears in the November issue of InMaricopa.
