Due to the culture of responsibility that the armed forces demand, VA home loans have the lowest default rate
Chicago (PRWEB) January 29, 2013
The Federal Savings Bank found that the fourth quarter of 2012 proved to be a resurgent time for the housing market, with foreclosures decreasing and home price showing improvement across the country. Despite the improvements experienced, VA Home Loan Centers recently reported an increase in short sale applicants during the fiscal year of 2012.
A short sale is when there is a sale of real estate and the proceeds are less than the balance owed on the property's loan. The increase in short sales experienced is thought to be a result of the recession, which caused the Veterans Administration Home Loan Centers Homeowner's Assistance Program to implement help for those who are looking for loan assistance.
Due to the culture of responsibility that the armed forces demand, VA home loans have the lowest default rate," representatives from the VA Home Loan Centers said. "Although the default rates are lowest of any mortgage product, there are many borrowers who have a forced relocation due to PCS (Permanent Change of Station) or a transition from military service to civilian life. In addition to this, there are many veteran borrowers who are not active duty but face some type financial hardship and must sell their home. Unfortunately, many of these borrowers owe more on their home than the current appraised value."
The representatives added that those homeowners can depend on the Veterans Administration guarantee and VA Home Loan Centers to help them get through the tough financial times.
Who qualifies for the program?
The short sale program that was implemented by the VA Home Loan Centers is available to former and current servicemembers, in addition to their families. It's meant to help those who are in a financial strain and unable to meet their mortgage payments for the month.
Those who are interested in borrowing from the program aren't required to have a VA loan. Veterans are encouraged to apply to see if they qualify for the program, which can alleviate some of the financial stress that has troubling them.
With mortgage rates at historic lows and home sales up by 15.3 percent, now is a great time for veterans to invest in the housing market.