The VA loan program had a monster year in FY11, and it’s in the middle of a monster stretch, triggered in no small way by a more restrictive lending industry. The VA backed almost 360,000 loans last year, a 14-percent increase from FY10. That’s good for a 168-percent increase since FY07, when the agency guaranteed a little more than 133,000 mortgages.
What’s more, the VA loan has emerged as the safest lending product on the market. VA loans have had the lowest rate of foreclosure and serious delinquency over the last 14 quarters and 11 quarters, respectively, according to the Mortgage Bankers Association. That’s even including prime loans.
Thousands of soldiers are preparing to return home from the Middle East and Afghanistan in the coming months. Their return, coupled with a surging interest in refinance loans, may put 2012 in the VA record books when the fiscal year comes to a close this fall.