Riding a Refinance Wave, VA Loan Volume Up 14% in FY11
Riding a wave of new refinance loans, the VA home loan program experienced a huge year in Fiscal 2011, guaranteeing nearly 360,000 loans, according to data provided by the Department of Veterans Affairs.
VA refinance loans surged 40 percent from FY10, as military borrowers sought to capitalize on historically low interest rates. Refinance volume increased at least 40 percent in more than two dozen states, from Alaska to West Virginia.
Purchase loans fell slightly from FY10, but overall loan volume was up 14 percent.
Odds and Ends
Total loans guaranteed increased at least 20 percent in 11 states (Alaska, California, Colorado, Hawaii, Iowa, Massachusetts, Michigan, Oregon, Tennessee, Vermont and West Virginia) and the District of Columbia.
Four states saw VA refinance volume increase at least 70 percent, including a staggering 108-percent jump in Michigan.
With FY11 in the books, the VA has now helped more than 18.7 million borrowers secure a home purchase or refinance since 1944. The total loan amount now exceeds $1 trillion.
Looking Ahead
A tighter lending climate has spurred renewed interest in this long-cherished program. VA loans feature less stringent requirements and require no down payment for the vast majority of borrowers. In fact, 9 in 10 VA borrowers secured financing in FY10 without putting down a dime.
That flexibility, coupled with record-low interest rates, continues to spur military borrowers to explore the home loan benefits earned by their service.
With rates likely to remain low and thousands of service members set to return from Iraq and Afghanistan in the coming months, the VA loan program appears poised for continued growth.
November 29, 2011 by Chris Birk · 1 Comment
Chris Birk is a former journalist and director of content and communications for
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