Serving Those Who Protected and Served Our Country

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Here’s a great opportunity to help someone; while helping yourself. With all of the military actions over the past several years, there are now millions of veterans who are in need of home financing.

Many of these vets are blocked from traditional conventional loan programs due to some credit dings resulting from their time in service, and the upfront costs of home buying and financing.

The VA Home Loan Program offers the answer. The program, part of the GI bill, affords veterans zero down mortgage financing, with more flexible credit standards. The intent of the program is to help vets buy and maintain a home.

There are no additional monthly mortgage insurance premiums, like other low down payment loans, and VA loan underwriting guidelines are geared toward helping a vet to qualify for their loan.

In the past 5 years, VA-backed loans more than doubled with over 700,000 loans guaranteed in just the last fiscal year. This is great for Veterans, and for the lenders who offer this financing.

With rates reported to increase over the next year, the cost of homeownership will rise. The VA program offers vets, and active military, an affordable alternative.

Talk about reaching Millennials. The VA estimates that about one-third of the loans guaranteed last year were made to millennial generation veterans and active military. These are people who served, or are serving, their country. They deserve some special treatment.

Further, according to the MBA, VA loans have a lower rate of default and foreclosure. Vets want their fair share of the American Dream and will do what they need to do to hang on to it. In addition, if they get into financial trouble, the VA is there for counseling and support to help.

So, with all the negativity going on in our Country and with the treatment of our veterans, let us tout a program that is working; working for Veterans, working for lenders, and working for the economy. This is something good for which we all can be proud.

If you’re a mortgage lender and you’re not offering VA loan, you’re missing out some great business. This is something you should probably be looking to do. You can help those who help to keep us safe and secure, all while increasing your business.

The good, old win-win scenario.  As an added bonus, doing this might just give you a good feeling.

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.