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The government is increasing volume of insured home loans, the Department of Veterans Affairs announced it guaranteed 80 percent more mortgages this fiscal year than in 2008. The VA mortgage loan program, which extends low-interest and low-down payment mortgages to eligible military members through participating lenders, has seen a boost in its popularity since the declination in housing and credit markets.

First-time home buyers and those with less-than-stellar credit records have relied heavily on loans insured by the VA mortgage loans and the Federal Housing Authority as private lenders have tightened their credit standards. According to the agency it had guaranteed $68.2 million in single-family home loans in fiscal 2009. The majority of those loans are 144,800 in all were VA refinancing and other mortgage loans refinancing of previous loans, a jump of 288 percent over last year’s tally of 37,300 refinancing. New mortgage loan purchase rose a more modest 27 percent, to 180,900 loans.