Shinseki Says Va's Home Loan Program A "continued Success

[allan]

Recent VA News Releases

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http://www.va.gov/opa/pressrel

Shinseki Says VA's Home Loan Program a "Continued Success"

Veterans More Likely to Avoid Foreclosure with VA-Backed Loan

WASHINGTON (Dec. 7, 2009) - Despite problems in the nation's housing

market, mortgage loans backed by the Department of Veterans Affairs (VA)

had a lower foreclosure rate than any other type of home loan in the

industry, as of the end of the last fiscal year.

"The dedication of VA's loan professionals, the support of our partners

in the mortgage industry and most importantly, the hard work and

sacrifice of our Veterans have made this possible," said Secretary of

Veterans Affairs Eric K. Shinseki. "VA is making good on its promise to

help Veterans buy homes, and Veterans are achieving their dreams."

Currently, about 1.3 million active home loans were obtained using VA's

Home Loan Guaranty Program. The program makes home ownership more

affordable for Veterans, active-duty members, and some surviving spouses

by protecting lenders from loss if the borrower fails to repay the loan.

More than 90 percent of VA-guaranteed loans are made without a

downpayment. Despite this, VA has the lowest serious delinquency rate

in the industry, according to the Mortgage Bankers Association.

Furthermore, VA's percentage of loans in foreclosure is the lowest of

all measured loan types-lower even than prime loans, which require high

credit scores and a 20 percent downpayment by the borrower.

Much of the program's strength stems from the efforts of VA employees

and loan servicers nationwide, whose primary mission is to help Veterans

stay in their homes, avoid foreclosure and protect their credit lines

from the consequences of a foreclosure, Shinseki said.

Depending on the situation, VA's loan specialists can intervene on a

Veteran's behalf to help pursue home-retention options such as repayment

plans, loan modifications and forbearance. Additionally, under certain

circumstances, VA can refund a loan, which involves purchasing the loan

from the mortgage company and modifying the terms so the Veteran can

afford the new mortgage payment.

Since 1944, when home-loan guarantees were offered under the original GI

Bill, through the fiscal year that ended Sept. 30, VA has guaranteed

more than 18.7 million home loans worth $1.04 trillion.

To obtain more information about the VA Home Loan Guaranty Program,

Veterans can call VA at 1-877-827-3702. Information can also be

obtained at http://www.homeloans.va.gov <http://www.homeloans.va.gov/> .

[Capt.]

Hello ,,,, yup I too bought my first home with the Va loan program and that was back in the late 70's. I didnt have any problems with it but it looks like it has changed now. I would have hoped that something at the VA hadn't changed but it sounds like the whole system is corrupted. Merry Chrismas to all and God Bless, NEVER GIVE UP . C.C.