According to the VA, there were roughly 22 million living veterans in our nation at the end of 2014, and yet only 4.8 million VA loans have been guaranteed since FY2000, nearly half of which have been refinances – not new purchases.
LINDON, Utah – Feb. 4, 2015 – As more and more service members and veterans become eligible for the VA loan program, only about 10% of eligible veterans are taking advantage of it. The VA has released reports that show that while there are millions of eligible veterans out there, many of them are simply choosing not to use their VA benefits. To fight back against the misinformation, myths, and misconceptions surrounding the VA loan program, Low VA Rates is striving to show our nation’s veterans how truly valuable their VA loan benefits can be – and it seems to be working.
2014, the first year Low VA Rates funded loans, ended with Low VA Rates funding over $680 million in loans – that’s 2,953 loans funded across 43 states – and they project that number will at least double in 2015. Eric Kandell, President of Low VA Rates, attributes this fast growth to their passion and drive to give back to the veterans who have given them so much: “We strive to offer lower rates, excellent customer service and we have been experts on VA loans for a long time. We have chosen to focus on one loan type and to do it extremely well. Our management team is driven and we have passionate employees that support the men and women of the US armed forces.”
Kandell also says their greatest tool in educating veterans on the benefits of the VA loan program is having the ability to offer the actual loan product created by VA without adding additional conditions as many lenders currently do. Far too often, concerns about being able to sell the loans on the secondary market require adding these additional conditions (which are at most times burdensome to the veteran and generally referred to as overlays) to the actual VA loan requirements. These overlays the large lenders impose on VA loans; simply create a VA loan equal to or slightly better than what can be found on the conventional market. According to Kandell, Low VA Rates’ independence is one of its greatest assets:
“One of the greatest benefits we have been able to pass on to our Veteran homeowners as we have grown has been our ability to provide loans that the VA intended. Many smaller broker shops must adhere to the private rules of Wall Street or the large lenders the brokers sell their loans to. As an independent Lender, Low VA Rates gets to offer VA loans with no additional overlays on top of the rules and guidelines we get from the VA.”
The VA loan program has an uphill battle to fight in helping more veterans take advantage of it. Currently, nearly 20% of veterans are not even aware of the VA loan program, and only 10% of veterans have utilized their VA loan benefits. Considering that nearly all veterans are eligible for the VA loan program, 10% leaves a lot of room for improvement.
As 2015 moves on, Low VA Rates intends to do its best to put VA loans on the road map for more veterans by offering VA loans that can save eligible borrowers tens of thousands of dollars.