Someone once asked: Are VA loans a good option? Are VA loans safe?

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Published Date 11/30/2017

If you mean "Are VA loans effective in helping veterans buy homes?" To that, the answer is an unequivocal, full-throated YES. If you are asking whether a loan without a requirement for a down payment and with no mortgage insurance is an acceptable risk for a lender, the answer is also YES.

For any readers who may not be aware, the VA home loan is a mortgage guaranteed by the Department of Veterans Affairs. Qualifying veterans (that would be primarily anyone who served under honorable conditions in the U.S. military with at least 181 days of active duty or 91 days during wartime) can purchase a home with a loan for the full amount of the property’s appraised value, up to the county maximum loan amount. That will be at least $424,100 nationwide, but much higher in more expensive housing markets. A quick call to a reputable, VA approved lender can help you with questions in your area.

Using the VA loan guarantee, a veteran applies for a loan through any lender offering VA loans (most do). Lenders use slightly different criteria to qualify veteran borrowers, so they may be able to be eligible for a higher loan amount than a conventional borrower.

The reason lenders are willing to make loans to borrowers who have no “skin in the game” (i.e. no down payment) is that VA guarantees these loans. This means that if the borrower went into default and the lender had to foreclose; the lender would be protected from loss to a high degree.

Oh, and there’s the fact that the veteran DID put considerable “skin in the game” when they signed up to serve in the first place. And we thank them for that.

So, to answer your question, "Are VA mortgages effective," I’d have to say, yeah, I think so.

As always, reach out to a trustworthy lender for loan guidelines or to apply for a VA loan.

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

This communication (including attachments) is for information purposes only, is not an offer, solicitation, recommendation or commitment for any transaction or as a confirmation of any transaction.

Bobbie Jo Haggard, NMLS 92472;
Licensed to do business in Washington & Oregon.

Heartland Mortgage, Inc. NMLS# 3205; Office(509) 529-3280
NMLS Consumer Access website: (www.nmlsconsumeraccess.org)