Minneapolis, MN: Mortgages guaranteed by the Department of Veterans Affairs ( VA Loans ) were among some of the most popular home loan last year, as thousands of current and former servicemen and servicewomen used the program to buy or refinance their houses.
New Legislation Expands Eligibility
Under new rules, members of the National Guard and Army Reserve who have been activated in response to the COVID-19 outbreak, recent civil disturbances and natural disasters are now eligible for VA mortgage loans with nothing down.
Previously, these servicemembers needed at least 90 days of consecutive active-duty service to qualify, or to have been in the National Guard or Reserves for six years.
Under the new law, and estimate 37,100 more are now eligible, including the 26,000 or so who were called to Washington, D.C., after the Jan. 6 event at the U.S. Capitol.
VA Loan Popularity
Somewhere around 3.5 million active and former military personnel have VA financing.
VA loans started in 1944, when the GI Bill gave our military personal returning from World War II a housing benefit for their service.
It is estimated that around 25 million VA loans have been completed over the years.
About 9 out of 10 VA loans are made with no down payment, even if the person has money for a down payment, and VA loans now makes up around 10% of all home loans.
VA loans are also some of the best performing loans, with the fewest number of defaults.
Negative Real Estate Agent Myth
Despite being an awesome benefit to our military personal, there is a persistent myth among real estate agents that VA loans are inferior products that involve tons more paperwork than other loans, that the appraisal will derail the deal, or that there is some sort of risk of the loan not closing if someone does not have a down payment.
Those beliefs are flat out wrong, according to the National Association of Mortgage Brokers, which calls VA Loans “an amazing benefit that veterans have earned.”
Statistics from the most popular mortgage company software company Ellie Mae, back-up this statement. The average time it took to close a VA loan last year was just two days longer than an FHA loan, and just three days longer than a conventional loan.
Next, the numbers show that from pre-approval to actual closing, VA loans close about the same as any other loan:
- 77% of FHA applicants make it to the closing table
- 78% of all VA loan applicants
- 79% of conventional applicants.
Both statistically irrelevant, and proof any Real Estate Agent with a bias against VA loans should hang their head in shame disrespecting our troops.
We are super proud to offer the amazing VA loan in MN, WI, IA, ND, and SD.
If you need a VA loan to buy a home or to refinance a home, simply reach out to our VA Loan Experts at (651) 552-3681, or visit VAMortgageMN.com
About Cambria Mortgage
Owned and operated by the family that provides luxury natural quartz surfaces, Cambria Mortgage is committed to the same standards of service, quality and integrity. A family-owned business in Minnesota, Cambria is the leading producer of quartz surfaces in North America. Cambria Mortgage is headquartered in Eden Prairie, MN. As a full service mortgage company, they offer a wide array of products, including Conventional, FHA loans, VA loans, Rural Development loans, and even Non-QM loans, like asset based loans, or bank statements for income proof loans for the self-employed. For more information, contact us.
NMLS 274132 - - Equal Housing Lender - Serving MN, WI, IA, ND, SD. Not an offer to enter into an interest rate lock agreement