This article takes a look at the benefits of the zero-down mortgage loan and how the VA loan program has been the safest mortgage on the market since the housing crash.
If you are considering buying a home, this article is worth your time to read.
Here’s the Article: The Surprising Safety of a Zero-Down Mortgage
The safest mortgage on the market since the housing crash is one where most buyers put $0 down. Wait, huh? Welcome to the surprising world of VA home loans.
About 9 in 10 buyers using this historic benefit program purchase without making a down payment. Despite that, these government-backed mortgages have had the lowest foreclosure rate of any loan type for 19 of the last 26 quarters, according to figures from the Mortgage Bankers Association. The safety and stability of the VA loan program remains one of the more under-reported trends in all of housing. An Urban Institute study released this past summer highlighted the VA’s foreclosure track record, but it’s a mostly under-the-radar success story. That’s not to say the lending industry needs some seismic shift away from “skin in the game.” There’s clearly a benefit to and place for down payments.
VA loans are also a hard-earned benefit reserved for those who serve our country. It’s a special program, and it should stay that way. But these zero-down loans do offer some lessons worth a closer look.