VA home loans, in Prince William County account for 50% of my new monthly mortgage originations. Our proximity to the Pentagon, Ft.Belvoir, Quantico, and other area military bases makes Woodbridge, VA and Prince William County a haven for active duty and retired military. As such, the VA-guaranteed mortgage loan with a zero down payment has been an important financing tool in today's market.
The volume for government-insured mortgages has spiked in the last two years in response to mortgage credit tightening. FHA is feeling the brunt of the "non-traditional" credit buyers so much that they've hired a new risk chief, David H Stevens, which has started implementing changes to keep FHA liquid. Which is great news but VA loans will continue to outperform FHA and conventional loans in my opinion because:
VA Home Loans are more employee benefit loans, not pure "government" loans like the FHA.
The VA is like a "club". It's current and past members share a common goal and feel a responsibility towards each other. As such, VA borrowers feel a greater moral responsibility towards the insuring agency (the Veteran Administration) and are less likely to default on their obligation. That "sense of duty" then, makes the veteran a more attractive borrower to lenders in Woodbridge, VA.
The VA actually cares about the condition of the collateral (house the veteran is buying) The VA requires lenders to use assigned appraisers to perform a comprehensive appraisal report which includes commentary about the property condition. Influence from Loan Officers and Realtors is diminished because of the "arms-length" nature of the appraisal assignment. In other words, there is no contact with the appraiser by the lenders or agents until after the appraisal has been completed. The appraisal is ordered through electronic system and the actual person is randomly selected. The VA Appraisal system eliminates any such worries and allows VA home buyers to purchase a home and know they are paying what the house is worth. The appraisal report is then reviewed by the Veterans Administration or a designated VA underwriter to complete the valuation process. The VA valuation process is so successful that conventional lenders adopted the process through the Home Valuation Code of Conduct. FHA plans to adopt this process starting in February.
If you need help securing a VA Home loan in Woodbridge, VA, visit www.mymilitarymortgage.com for more information. Or give me a call (703) 497-3936, it will be painless I promise.