How a VA loan makes home ownership more attainable for Veterans
Our veterans deserve the opportunity to own homes in the country they protect. Which is why, following World War II, the government created a special mortgage lending program just for veterans.
The program removes some of the barriers toward homeownership like the need for down payments or private mortgage insurance, making it easier for veterans to attain the dream of homeownership in the country they served for.
Did you know?
The decade between 1940 and 1950 witnessed the biggest increase in US homeownership in the country’s recorded history, as shown in the below graph.
This increase, along with other post-war economic factors, can be largely attributed to the creation of the VA Home Loan Program, as part of the GI Bill of Rights. This program drove many returning veterans to purchase homes (especially in the suburbs). In fact, 2 million home loans were granted through this program in the first six years!
In 2020, a new record was set for VA loans when demand driven by low interest rates, combined with mortgage technology allowing for faster loan origination, resulted in approximately 3,200 VA loans processed each day!
Xpanse is proud to have partnered with Freedom Mortgage, who played a significant role in enabling homeownership for veterans and contributed to this record-setting number.
What’s Different about a VA Loan?
The Veterans’ Administration guarantees portions of VA loans so that private lenders can offer better terms to veterans, service members, and surviving spouses. The major benefits of a VA loan are:
- No down payment required
- Lower interest rates
- Limited closing costs
- No Private Mortgage Insurance (PMI) requirement
VA loans are available for a service member’s lifetime — that means they can apply for a VA loan each time they purchase a home.
How is Xpanse helping?
Xpanse is on a mission to increase transparency into the loan process by surfacing these sometimes overlooked options and allowing borrowers to interact with lenders in a stress-free, simple way.
On the lender side, Xpanse removes barriers for lenders offering these loans through its integrated system, allowing lenders to offer more varied products and move more veterans toward the American dream of homeownership.
Xpanse is building the modern OS for the greater mortgage industry that will connect and create value to borrowers, lenders, servicers, and providers. Conquering the last frontier of Fintech #BuiltInSeattle.
We’re hiring, learn more xpanse.com/careers
