The volume of loans offered by Department of Veterans Affairs in 2013 was huge and it is considered to have touched the crest of upward trend that started since the housing market witnessed a collapse.
A staggering amount of mortgage loans, approximately 630,000 in number, were offered by the VA department in the financial year of 2013, which is the highest in the history of program which recently entered the 70th year. The average amount of loan is considered to be about $225,000, which reflects how much value this program holds for the working class of America.
The growth of this program has been pretty incredible, as it is indicated by the total volume of loan which has seen an upsurge of 372 % since the financial year of 2007.
A major contributor in this remarkable growth has been the interest rates which reached a historical low and particularly lead to rise in loans that people opted for refinancing purpose. Confirming this further, it was seen that about half the loans sanctioned by VA department were for refinancing.
The next factor is definitely the stern lending practices that prevailed since past six years, making VA loans a highly viable and convenient option, specifically for a majority of service members. As qualifying for regular financing became more and more difficult, veterans and military personnel started considering VA loans the key to homeownership.
Besides, the absence of down payment and mortgage insurance makes it the best option for those who meet the qualifying requirements of VA loans.