The VA Home Loan Guaranty Program may be underutilized. A VA report in 2008 stated that of the nearly 24 million U.S. veterans, less than 10% had taken advantage of their VA home loan benefits. So what’s going on with the other 90%? According to the 2008 VA stats, 20% of veterans don’t even know the VA Home Loan Program exists.
A VA loan is an entitlement earned by serving our country. The program has many attractive features like 100% financing, no mortgage insurance and flexible qualifying. Approximately 90% of VA borrowers pay nothing down for their VA loans. And, half of them cited the “zero down” feature as their primary reason for choosing the program.
The top three answers veterans gave when asked why they had not used their VA loan entitlements were:
- “What program?” Almost 20% simply hadn’t heard about it.
- 11% assumed they were not eligible for a VA home loan entitlement
- 4% didn’t know how to apply for a VA loan and therefore didn’t pursue it
Since the report, the VA has made a concerted effort across the country to provide free educational seminars that inform veterans of their benefits, including home loans.
To find out more about VA loans, contact an experienced mortgage professional.