Why DC-area homebuyers lead the nation for VA mortgage loans

The Department of Veterans Affairs has one of the best mortgage lending programs available to buyers and those loans are extremely popular with D C -area buyers Related stories Land swap will open up more waterfront land around Georgetown to the general Why DC-area home prices keep hitting records despite fewer buyers and more for sale Average down payment for DC-area homebuyers is now A contemporary Redfin document ranks the D C region No in the nation for share of VA loans In April VA loans accounted for of all mortgage loans originated in the D C metro behind only Virginia Beach Virginia at VA loans require no down payment no private mortgage insurance and often lower interest rates than conventional loans They are available to all active-duty facility members veterans and their surviving spouses We know that there are a lot of veterans in this area stated Jessica Lautz vice president of research at the National Association of Realtors We know there are a lot of operational military in this area and those who are in reserves They are taking advantage of this zero-down payment campaign That large pool of military veterans includes thousands of federal ruling body employees in the D C area and even more who ve transitioned to the private sector as governing body IT and defense contractors Those companies pride themselves on their large veteran workforce and numerous of those are high-paying jobs They are still eligible for inexpensive VA mortgage loans FHA loans have also grown in popularity in the D C area with of loans in the D C region originating through FHA programs in April according to Redfin Like VA loans FHA loans have lower down payment requirements But they are also available to buyers typically with lower credit scores and less than perfect credit histories including those with past delinquencies and foreclosures For homebuyers taking out conventional mortgage loans through banks or mortgage brokers down payment requirements are the biggest hurdle The median down payment on a conventional mortgage loan in the D C region in April was or roughly The down payment remains the gold standard cited for mortgages but it is not common The National Association of Realtors reports the typical down payment for a first-time buyer over the last five years has been to The comes in because you know that you may have to pay property mortgage insurance or PMI Lautz explained But not every situation is the same so making sure that you talk to those lenders is incredibly essential In the D C metro in April of all home purchases were all cash Source