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Minneapolis, MN: Mortgages guaranteed by the Department of Veterans Affairs ( VA Loans ) were among some of the most popular home loan last year, as thousands of current and former servicemen and servicewomen used the program to buy or refinance their houses.
New Legislation Expands Eligibility
Under new rules, members of the National Guard and Army Reserve who have been activated in response to the COVID-19 outbreak, recent civil disturbances and natural disasters are now eligible for VA mortgage loans with nothing down.
Previously, these servicemembers needed at least 90 days of consecutive active-duty service to qualify, or to have been in the National Guard or Reserves for six years.
Under the new law, and estimate 37,100 more are now eligible, including the 26,000 or so who were called to Washington, D.C., after the Jan. 6 event at the U.S. Capitol.
VA Loan Popularity
Somewhere around 3.5 million active and former military personnel have VA financing.
VA loans started in 1944, when the GI Bill gave our military personal returning from World War II a housing benefit for their service.
It is estimated that around 25 million VA loans have been completed over the years.
About 9 out of 10 VA loans are made with no down payment, even if the person has money for a down payment, and VA loans now makes up around 10% of all home loans.
VA loans are also some of the best performing loans, with the fewest number of defaults.
Negative Real Estate Agent Myth
Despite being an awesome benefit to our military personal, there is a persistent myth among real estate agents that VA loans are inferior products that involve tons more paperwork than other loans, that the appraisal will derail the deal, or that there is some sort of risk of the loan not closing if someone does not have a down payment.
Those beliefs are flat out wrong, according to the National Association of Mortgage Brokers, which calls VA Loans “an amazing benefit that veterans have earned.”
Statistics from the most popular mortgage company software company Ellie Mae back-up this statement. The average time it took to close a VA loan last year was just two days longer than an FHA loan, and just three days longer than a conventional loan.
Next, the numbers show that from pre-approval to actual closing, VA loans close about the same as any other loan:
- 77% of FHA applicants make it to the closing table
- 78% of all VA loan applicants
- 79% of conventional applicants.
Both statistically irrelevant, and proof any Real Estate Agent with a bias against VA loans should hang their head in shame disrespecting our troops.
We are super proud to offer the amazing VA loan in MN, WI, IA, ND, SD, CO, FL, CO, and FL.
If you need a VA loan to buy a home or to refinance a home, simply reach out to our VA Loan Experts at (651) 552-3681, or visit VAMortgageMN.com
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We are not acting on behalf of, or under the direction of the VA or the Federal Government. The Veterans Administration does not lend directly to the public, only through approved lending institutions like us here at Cambria Mortgage.
The Department of Veteran Affairs requires mortgage companies who offer VA Loans go through a stringent approval process. We are proud tp a VA approved mortgage lender and are proud to help military families use their VA Loan Benefits.
Equal Housing Lender, Cambria Mortgage NMLS# 322798. Our lending services provided only in the following states: Minnesota, Wisconsin, Iowa, North Dakota, South Dakota, Colorado, and Florida. This is not an offer to lend or to extend credit, nor is this a guaranty of loan approval or commitment to lend. The information here may not be up-to-date and may no longer be accurate. Products and interest rates are subject to change at any time due to changing market conditions. Actual rates available to you may vary based upon a number of factors. Consumers must independently verify the accuracy and currency of available mortgage programs. All loan approvals are subject to the borrower(s) satisfying all underwriting guidelines and loan approval conditions and providing an acceptable property, appraisal and title report. © 1998 - 2024, Joe Metzler, NMLS 274132