Curve

Veteran homeownership strong, thanks to VA loans

Aly J. Yale
The Mortgage Reports contributor

VA paves the way

VA loans have long boasted some of the lowest rates on the market and, according to recent data, many veterans in the West and South have started to take notice.

Click to see your VA loan eligibility (Nov 19th, 2018)

Leveraging low rates

According to Ellie Mae, the average interest rate on a 30-year fixed-rate VA loan was just 3.99 percent in September. For a conventional loan? It was 4.26 percent.

VA mortgage myths: What you don’t know CAN hurt you

The low rates have spurred more than 740,000 veterans to take out a VA loan over the last year. According to The Washington Post, that’s more than any other year before it – and a whopping 300,000 more than just three years ago.

Veterans in Washington are taking particular advantage of VA rates. The state saw a 78-percent increase in closed VA loans over the past four years.

California, Texas and Florida all saw big VA activity, too. The three states had more than 50,000 VA loans secured in the last 12 months, while Washington, Arizona, Colorado, North Carolina, South Carolina and Georgia boasted between 25,000 and 50,000.

Homeownership on high

Low rates are only one of the many benefits of a VA loans. They also free buyers from costly down payments and monthly mortgage insurance premiums.

VA mortgage rates are the lowest, so why aren’t all veterans using these loans?

For these reasons, veterans have long been one of the largest homeowning segments of the country. According to The Post, “Their homeownership rate is close to 80 percent, compared with 64 percent for the general population.”

Looking for a VA loan?

Are you a veteran or military service member? Shop around and see what VA loan rates you’d qualify for today.

Click to see your VA loan eligibility (Nov 19th, 2018)