Military veterans who have taken advantage of home loan benefits give the process rave reviews with comment like, “Military mortgage is the most effective real estate lender,” and “If you are looking for a better rate on the market and a fast processing of your loan then do not hesitate to contact quickly military mortgage.”
So, why are so few veterans making use of this program?
The United States Department of Veterans Affairs offers a wide variety of benefits including housing, education, and health care. Recent studies show 2/3 of veterans have used their education and health benefits while less than 1 in 5 has taken advantage of a VA home loan.
What is a VA Loan?
Veterans and active-duty military personnel should be taking advantage of these home loans designed specifically for them and their families. These loans are backed by the U.S. government offering benefits and advantages not available with a traditional mortgage.
Advantages of a VA Loan
A traditional mortgage lender can offer better terms to veterans because part of the loan is guaranteed by the Veterans Administration.
Most of the time veterans can buy a home with no money down and are not required to purchase mortgage insurance making the monthly payment smaller.
It is easier for veterans to qualify for a VA loan due to the less strict income and credit score requirements.
A VA loan is not a one-shot deal. It can be used multiple times provided it is used in the purchase of the veteran’s principal place of residence.
The VA Home Loans program allows veterans who are already homeowners to refinance and get 100% of their equity in cash. This money can be used to pay off high-interest debt, home improvements, retirement or to further your education.
A veteran’s eligibility is determined based on whether his service was active duty during wartime, or the service to our country was during peacetime.
There are also certain situations where the spouse of a veteran or select other individuals can be eligible for a VA home loan.
Click here to view a chart covering and explaining the various eligibility requirements.
Why aren’t VA Loans More Popular?
Considering this program has been around for over 70 years and some 80% of veterans are homeowners it seems it would be used by veterans much more than it is.
Part of the problem is so many veterans are unaware this benefit exists. Those who are aware of this benefit don’t fully understand its advantages so they don’t consider it.
There is a perception among some veterans that VA loans are not as good as a conventional loan or they are some sort of a handout meant for poor people.
Often banks will try to steer clear of VA loans because they are not as profitable for the bank. The intent of these loans is to benefit those who have served our country not the bottom line of the lenders.
The real problem is a lack of education about the benefit. The VA needs to make sure all veterans are fully aware of what is available to them and help them understand the advantages of these benefits.