PT  - JOURNAL ARTICLE
AU  - Laurie S. Goodman
AU  - Ellen Seidman
AU  - Jun Zhu
TI  - VA Loans Outperform FHA Loans—<em>Why? And What Can We Learn?</em>
AID  - 10.3905/jfi.2014.24.3.039
DP  - 2014 Dec 31
TA  - The Journal of Fixed Income
PG  - 39--51
VI  - 24
IP  - 3
4099  - https://pm-research.com/content/24/3/39.short
4100  - https://pm-research.com/content/24/3/39.full
AB  - Veterans Administration (VA) loans have consistently performed better than Federal Housing Administration (FHA) loans. In this article, the authors take a closer look at both programs to identify why VA loans perform better. They conclude that the residual income test may be a critical differentiating factor and suggest that regulators evaluate whether the test might be a good supplement to the FHA’s current assessment of a borrower’s ability to pay.TOPICS: MBS and residential mortgage loans, legal/regulatory/public policy