Posted by: Larry Stevens | November 13, 2014

Real Estate News Update – November 13, 2014

Real Estate Finance Insights

Good NewsThe Department of Veterans Affairs’ VA home-loan program has gained significant market share compared with competing private and government options.  The VA’s home-purchase financing program is now at record levels. New loans to buy houses have more than doubled since 2007.  Since 2011, when VA-backed home loans represented about 3 percent of total home-purchase finance activity, they’ve soared to roughly a 7 percent share, according to the Mortgage Bankers Association.  For sales of newly built homes, the VA share is larger: 14.5 percent compared with a 16.7 percent share for the other major federal housing finance program, FHA.  So VA loans are housing’s hot product, but why?  Lots of reasons:

  • VA-guaranteed loans come with terms that few other financing sources can match: zero down payment; flexible and generous credit underwriting that emphasizes the individual applicant rather than the algorithm-driven computer programs that dominate conventional lending.  Also, VA interest rates are competitive…

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