Overview
- VA’s market share ticked higher, with Redfin reporting 7.3% of mortgaged buyers used a VA loan in August, up from 6.5% a year earlier, and MBA data showing applications rising from 13.4% to 14.9% week over week in late October.
- Core VA lending functions remain available during the shutdown, with the agency saying nearly 80% of eligibility certificates are issued instantly and 99.9% within five days, even as about 37,000 VA employees face furloughs or unpaid status and other services are curtailed.
- Buyer-favoring conditions are helping VA borrowers win offers with little or no money down, though some sellers still choose higher-priced conventional bids, according to agents in Florida and Virginia.
- Awareness gaps persist, as a Navy Federal survey found more than half of respondents wrongly believed a down payment is required and fewer than half of veterans knew about the zero-down option.
- To bridge upfront costs not covered by the guaranty, lenders and partners are rolling out assistance such as NewDay Advantage unsecured loans for closing funds and FHLB Dallas HAVEN grants, while NAR/Realtor.com report that 74% of first-time VA users put zero down.