Renae Stucki Realtor recently read an article on about the rise of loans for Veterans and we thought we’d share the information we learned with you.

After all, Veterans protect the American Dream and they deserve to own a part of it too.  Anne Miller wrote this article about the Department Of Veterans Affairs and their loan program that seeks to do just that.  Through the program, servicemen and women can obtain home loans with no down payment and no private mortgage insurance.

The VA doesn’t offer the loan itself.  Rather, it sets guidelines for the loans and more importantly, insures the loans; which gives lenders more confidence to lend and less likelihood they’ll be holding keys if the Veteran has difficulty making payments.

Such mortgages have become a smoking hot commodity.  In 2007, 133,000 such loans were issued.  In 2013, the number hit 630,000.  That’s more than a 300 hundred percent increase for a program that began in the wake of World War II and celebrates its 70th Anniversary this spring.

Chris Birk, author of The Book On VA Loans, attributes the rise to a confluence of several trends…  The rising number of veterans who qualify and the tightening of loan qualification requirements.  Throw in a shaky economy and you have the perfect storm.

The US has been considered at war, for the sake of defining military service, since the Gulf War – more than 20 years, Birk says.  Veterans only have to serve 90 days active duty to qualify, as opposed to 180 days during peacetime.

Meanwhile, by early 2014, the average credit score needed to obtain a conventional mortgage was 725, according to Ellie Mae.

The average VA loan score is 620.  And military members often have more credit dings due in part to the nature of their jobs.

The loans may not work for everyone.  A family who can afford to put 20% down might do better trying a conventional mortgage, but if their credit scores fall below pristine, the VA loan could still serve as a better option.  And while FHA loans might be an option, he VA loans don’t require that private mortgage insurance that can drive up monthly payments.

The VA also backs other programs, for refinancing a lower rate, loans to adapt a home to the needs of a disabled vet, even some property tax deductions.

If you’re a vet and you’re having trouble qualifying or you’re concerned about qualifying, why not talk to a professional who can point you in the right direction and help you achieve your goals?  

Renae Stucki is the agent for you.  Call today!