Veterans took greater advantage of VA home loans in 2011 than in recent years, and the benefits are paying off. The foreclosure rate for VA mortgages is lower than any other mortgages in the housing industry, according to information released January 30 from the Department of Veterans Affairs.

VA guaranteed nearly 358,000 home loans during 2011, a roughly 14 percent increase over 2010. The agency also helped more than 72,000 veterans avoid foreclosure, and foreclosure rates in 2011 were down 28 percent from the previous year. In fact, foreclosure rates for VA-backed home loans have been measurably lower than any other mortgage type for the past 14 fiscal quarters, according to VA. The nationwide foreclosure rate in 2011 was the lowest since 2007. A recent RealtyTrac survey, however, showed foreclosures still plague the housing market.

“We are committed to making even more veterans and servicemembers aware of this important benefit and delivering the assistance they deserve when financial difficulties arise,” said VA Under Secretary for Benefits Allison A. Hickey. 

VA currently guarantees roughly 1.5 million mortgages. Veterans and active servicemen and women can contact VA loan specialists to learn more information. VA home loans are guaranteed under the G.I. Bill.

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