October 29, 2014

Mortgage Companies and Leading Banking Institutions Assist Veterans Become Homeowners

Mortgage Companies and Leading Banking Institutions Assist Veterans Become Homeowners

Some campaigns have been started aiming to help veterans and their families own a home, which is a reason why Veteran Affairs loans have become increasingly popular today.

Big mortgage companies and banks made efforts to assist veterans get affordable and decent housing and this includes the advertisement of VA loan benefits along with donating hundreds of homes to vets mortgage-free.

The Department of Veterans Affairs’ home loan program is currently at record levels with new loans to purchase houses doubling since 2007. Furthermore, according to the Mortgage Bankers Association, VA-backed mortgages accounted only for 3% of total home-purchase mortgage activity in 2011 and now they have increased their share to 7%. As for the sales of newly built homes, VA share got 14.5% in September compared to 16.7% shares from other major federal housing finance program, the Federal Housing Administration.

According to lenders, there are approximately 22 million veterans nationwide and most of them are actually eligible for a VA loan.

“In an era of extremely tight credit and underwriting in most segments of the marketplace, the VA program looks like an extended hand for creditworthy vets who don’t have large amounts of money to put down on a home purchase or are transitioning into regular employment in the mainstream economy,” the Los Angeles Times reports.

Meanwhile, a lot of lenders have already started partnering with nonprofit groups to help veterans become homeowners. For instance, organisations like Operation Homefront, the Military Warriors Support Foundation, HomeStrong USA and Purple Heart Homes have given away hundreds of homes they got from donations from major banks in the country such as Bank of America, JPMorgan Chase, Wells Fargo Home Mortgage, U.S Bank, SunTrust Mortgage, among others.

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