More American service members are homeowners than at any other time in recent history, largely due to an affordable home buying option available exclusively to them: a loan through the Veterans Administration. Last year, there were approximately 740,000 VA Loan originations – the most ever in a single year.
The nearly three-quarters of a million VA Loans in 2016 is an increase of more than 300,000 over the past three years. The Veterans Administration began offering assistance to American military members and qualifying relatives as early as the original GI Bill in 1941.
VA Loans offer significant interest rate discounts – in fact they have had the lowest interest rate available in the market for the last 4 months, according to data from Ellie Mae. As mortgage rates fluctuate, the VA offers borrowers the opportunity to refinance to lower rates without an appraisal and credit check.
Meanwhile, conventional conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.