Friday, August 8, 2008
VA Average Mortgage Passes $200K
During the months of February through June of this year, the average VA mortgage loan amount exceeded $200,000. The average loan amounts of government insured FHA mortgages and VA guaranty mortgages have been increasing each month. Note on the accompanying chart the spread between the average VA mortgage loan amount and the average FHA mortgage amount. Except for the past two months, the spread was increasing.
Nationwide, the average VA mortgage amounts have been exceeding the average FHA mortgage amounts by roughly 15 percent. For mortgage originators generating loan origination fees, VA mortgages are going to provide more revenue per unit. The problem for originators is that VA mortgages are not necessarily the most appealing mortgage product for eligible veterans. Although the volume of VA mortgages have been increasing, the number of new VA mortgages is under 20,000 units per month.