For the last two years, a Mortgage Bankers Association national survey on loan delinquencies shows the VA foreclosure rate to be the lowest of all mortgage loans. The survey also showed the serious delinquency rate for VA loans to be the lowest for the last 15 months.
VA Secretary Eric Shinseki was quoted as saying, “The continued high performance of VA loans is due to the dedication of VA’s loan professionals, the support of our partners in the mortgage industry and most notably, the responsibility of our Veterans and their desire to maintain home ownership.” There are more than 1.3 million mortgages backed by the VA Home Loan Guaranty Program. The Program has been in existence since 1944 and has backed more than 18.8 million home loans valued at $1.06 trillion.
VA-approved lenders can offer mortgages with more attractive terms to eligible borrowers. Veterans, active-duty military members and certain surviving spouses may be eligible for the VA home loan program. The savings VA-eligible borrowers experience due to the federally-backed mortgages helps make home ownership more affordable.
VA protects borrowers, too. Thirteen VA Regional Loan Centers with qualified mortgage counselors to help borrowers in financial distress. To assist veteran mortgagees, counselors can seek loan modifications, revise repayment plans and ask for forbearances (all better options than foreclosure) that can help a veteran keep his or her home.