VA-guaranteed home loans have lowest foreclosures, delinquency rates

During these difficult economic times, VA-guaranteed home loans continue to have the lowest rate for serious delinquency and foreclosures in the industry. There are currently about 1.3 million active home loans that have been obtained using VA’s Home Loan Guaranty Program.

The program makes home ownership more affordable for Veterans, active-duty service members, and eligible surviving spouses by permitting low or no down payment loans and by protecting lenders from loss if the borrower fails to repay the loan. According to the Mortgage Bankers Association National Delinquency Survey, VA’s foreclosure rate for the last eight quarters and serious delinquency rate for the last five consecutive quarters have been the lowest of all measured loan types.

Depending on the situation, VA loan specialists can intervene on a Veteran’s behalf to help pursue home-retention options such as repayment plans, forbearances and loan modifications. When home retention is not an option, sometimes VA can help arrange a sale, or a deed-in-lieu of foreclosure, both of which are better options for Veteran borrowers than foreclosure. Since 1944, when home-loan guaranties were first offered under the original GI Bill, VA has guaranteed more than 18.8 million home loans worth $1.06 trillion, turning a depression-era nation of renters into today’s nation of home owners.