VA purchase loans increase in Georgia

ALBANY — For the seventh year in a row, VA purchase loans increased yearly and are up 59 percent compared to five years ago, according to the annual VA loan statistics map release by Veterans United Home Loans. In Georgia, VA purchase loans were 59 percent higher in Fiscal Year 2018 than in 2013. Across the nation, the VA backed more than 610,000 loans worth more than $161 billion in 2018.

“This historical benefit program has experienced a resurgence since the housing crisis,” Chris Birk, director of education at Veterans United, said. “More veterans have used this $0 down loan in the last five years than in the prior dozen years combined. While the VA’s data show refinance loans cooled in 2018, the purchase market remains strong as more veterans and military families turn to what’s become the most powerful home loan on the market.”

Although statewide information is not available, metro data revealed several key areas in Georgia saw VA purchase loan increases. A list of cities in Georgia and their increases compared to FY 2013 include:

— Atlanta, 119 percent

— Savannah, 70 percent

— Augusta, 70 percent

— Athens, 150 percent

— Macon, 100 percent

— Valdosta, 90 percent.

About 10 percent of the mortgage market is made up of VA loans, which is a large increase in market share from merely a decade ago. VA loans allow qualified veterans to buy with no money down and no private mortgage insurance and also offer more flexible and forgiving credit guidelines.

According to mortgage software firm Ellie Mae, the VA loan has had the lowest average interest rate on the market for the past 53 straight months. The VA loan also has had the lowest foreclosure rate of any loan product, despite not requiring a down payment, for 48 consecutive quarters, according to data from the Mortgage Bankers Association.

“This hard-earned job benefit turns 75 years old in 2019,” Birk said. “The VA loan program continues to fulfill its original mission and help a new generation of veterans and service members achieve the American dream of homeownership.”