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Friday, June 13, 2014


Underused VA Mortgage Program Makes Inroads as FHA Costs Rise

More active-duty service members, as well as veterans, are seeking out home loans guaranteed by the Department of Veterans Affairs. Participation in the VA mortgage program is rising because specialists in the niche are promoting it more and because other low-down-payment products have become more costly. A spike in FHA mortgage insurance premiums is making VA more attractive, according to Megan Booth, senior policy representative at the National Association of Realtors. "There is not a Realtor alive today that thinks FHA is a better deal" for veterans, she says. "That is helping the VA grow and it will continue to help the VA grow." VA lenders originated a record 629,300 single-family loans in fiscal 2013, which ended Sept. 30. The agency endorsed 90,820 single-family loans in the fiscal second quarter, totaling $20.1 billion, down 10.5 percent from the prior quarter. Sixty-three percent of VA loans are going to home buyers rather than for refinancing, agency officials add.

From "Underused VA Mortgage Program Makes Inroads as FHA Costs Rise"
American Banker (06/12/14) Collins, Brian

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