An official website of the United States government
A .mil website belongs to an official U.S. Department of Defense organization in the United States.
A lock (lock ) or https:// means you’ve safely connected to the .mil website. Share sensitive information only on official, secure websites.

Shinseki says VA’s home loan program is strong

  • Published
  • By Air Force News Service
WASHINGTON --  Mortgage loans guaranteed by the Department of Veterans Affairs continue to have the lowest rate for serious delinquency and foreclosures in the industry.

"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," said Secretary of Veterans Affairs Eric K. Shinseki. "VA is making good on its promise to help veterans achieve the American dream of owning a home."

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 servicemembers 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 rates for the last eight quarters and serious delinquency rates for the last five consecutive quarters have been the lowest of all measured loan types, including prime loans.

Depending on the situation, VA's 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 officials 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 guarantees were first offered under the original GI Bill, VA has guaranteed more than 18.8 million home loans worth $1.06 trillion.