RT Journal Article SR Electronic T1 VA Loans Outperform FHA Loans—Why? And What Can We Learn? JF The Journal of Fixed Income FD Institutional Investor Journals SP 39 OP 51 DO 10.3905/jfi.2014.24.3.039 VO 24 IS 3 A1 Laurie S. Goodman A1 Ellen Seidman A1 Jun Zhu YR 2014 UL https://pm-research.com/content/24/3/39.abstract 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