KILLEEN, Texas — More than half of new foreclosures in 2016 around the military post Fort Hood were tied to Veterans Affairs home loans.
The Killeen Daily Herald reports that about 67 percent of all new foreclosures in Bell County were tied to the zero-percent-down mortgages for qualified veterans and active-duty soldiers.
Killeen real estate agent Brian Adams told the newspaper that many soldiers “find that they can’t sell it without bringing a lot of money to the table.”
Because lenders are guaranteed a quarter of the loan value in the event of a default, homebuyers with a VA loan often put no money down.
If service members then try to sell later, the cost to cover the remaining mortgage could be higher than the actual market value of the home.
Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.