New Study Shows San Diego VA Home Loan Applications on the Rise

San Diego VA loans

San Diego VA loans on the rise

Dating back 70 plus years, the VA home loan program has helped 18 million veterans and active duty service members become homeowner since its inception. Although the benefits of the program are clear cut (no down payment, easier qualifying standards, reasonable interest rates), despite this many veterans do not take full advantage of the loan, or are all together unaware of its existence. Currently, only 13 percent of all veterans have used the benefit. 22 million veterans live in this country, yet as of 2012, only 1.5 million active VA home loans populated the housing market. A survey conducted by the VA in 2004 reported that 20 percent of veterans were unaware of the VA housing loan.

With eight out of ten VA borrowers unable to secure traditional financing, and military members especially susceptible to foreclosures and post rescission difficulties, the VA home loan program is a crucial aspect of the home buying process for many. In 2011, the Department of Veterans Affairs assisted nearly 73,000 veterans underwater on their mortgage stay in their homes. Furthermore, a short-sale, foreclosure and bankruptcy history does not negate eligibility for the VA loan.

Over the past decade, VA loan usage has increased. In 2004, VA loans only made up two percent of all mortgages; in 2014 that number has increased to eight percent.

In 2012, VA Home Loan Centers announced the findings of a 24-month regional statistical area study. The scope of the study was to examine the use of VA home loans. The results of the study showed that over the previous two years, VA home loans have increased their market share in the San Diego area.

In San Diego, VA loans represented 11.05 percent of all purchase transactions between Feb. 13, 2011, and Feb. 13, 2012. In the preceding twelve months this number rose from 9.24 percent of all purchase transactions.

The study also demonstrated that while VA loans are becoming a more popular finance option to purchase a home, the guaranteed loan is used to finance only 1.85 percent of all homes in the region.

The survey included sales and finance data of the greater San Diego area, encompassing southern Riverside and Orange counties. The report by VA Home Loan Centers also showed that the overall number of home sales in the region had declined by 9 percent. There were 38,356 total home sales from February 2010 to February 2011 and 36,023 home sales in the following 12-month period.

At the time, Chief Loan Steward Philip Georgiades of VA Home Loan Centers said “The data indicates an increase of sellers willing to accept VA home loans.” “The numbers also indicate a growing awareness of VA loans as a way to rebuild credit. Many buyers seeking to purchase a home either as a first-time buyer or as a buyer who had a previous foreclosure or bankruptcy are discovering that the VA loan has many other advantages in addition to the ability to buy with no money down. Among those advantages are softened credit restrictions.”

The regional report applied a comprehensive analysis of purchase home loan transactions guaranteed by the U.S. Department of Veterans Affairs among other financing methods. The data collected compared cash purchases to VA, FHA and conventional home loan use.

About VA Home Loan Centers….

VA Home Loan Centers provides short sale VA loan assistance, and grants are available to borrowers who qualify.

VA Home Loan Centers is a qualified lender of mortgage loans to United States veterans. The VA loan program helps veterans, active and former duty military, and certain spouses of wounded, MIA or KIA U.S. service personnel achieve the ultimate American dream: home ownership. Services provided by VA Home Loan Centers include real estate representation such as VA loan short sale processing, purchase assistance and VA loan application processing. VA Home Loan Centers offers beneficial loans to all eligible veterans and their families. A loan through VA Home Loan Centers is easier to qualify for than other loan programs because of higher front-end and debt ratios as well as the no-down-payment, no-closing-costs option (VA no/no). Other benefits include the ability to finance the funding fee, no mortgage insurance premiums, no prepayment penalties, low interest rates and monthly costs. VA loans available include 15-year and 30-year fixed mortgage rates. Borrowers who apply directly through VA Home Loan Centers may also be eligible for a rebate of up to 1.5 percent of the total loan amount.

You can call 888-573-4496 anytime to learn more or to apply for a VA loan.

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