VA Loans: A Growing Path for U.S. Veterans’ Homeownership
Veterans Affairs (VA) loans are increasingly becoming a popular path to homeownership in the U.S, especially as elevated home prices and mortgage rates continue to pressure buyers. However, many veterans and service members still lack full understanding of this benefit they have rightfully earned.
Increasing Popularity of VA Loans
An analysis of county records across 40 major U.S. metro areas by Rocket Mortgage and Redfin found that VA loans accounted for 7.7% of mortgaged home purchases in March, a slight increase from 6.8% a year earlier. This tied with the numbers for 2020 for the highest March share in a decade. This rise comes as many eligible veterans, active-duty service members, and surviving spouses seek lower upfront costs when purchasing homes.
Understanding VA Loans
VA loans are issued through private lenders and backed by the Department of Veterans Affairs. They typically require little to no down payment and no private mortgage insurance. Despite the increasing popularity, surveys show that many veterans and service members still lack comprehensive understanding of how this benefit can help them become homeowners.
Survey Findings on VA Loans Awareness
A January survey by Rocket Mortgage of over 1,100 active-duty service members, veterans, and their spouses, revealed that while 59% know about VA loans, less than half had used or planned to use the benefit for home purchase. Only 16% of respondents were familiar with state-specific veteran housing resources.
VA Loans: Opening Pathways to Homeownership
Former U.S. Army cryptologic linguist and current Rocket Mortgage team member Ryan Dandin, shares his experience with VA loans, stating that it helped him move from temporary military housing to a permanent home in Michigan. He encourages veterans and service members to look into VA loans before ruling out the possibility of owning a home. Steven Mohler, who served in the Army Reserves, also encourages veterans not to assume that homeownership is out of reach. He was able to secure a low mortgage rate on his Arizona home through a VA loan.
Significance of Homeownership for Veterans
Against the backdrop of America’s 250th anniversary year, Dandin adds that homeownership for veterans carries significant meaning. He states, “Homeownership is one of the most tangible expressions of the American dream… A home is where you raise your kids, where you build equity for your future and where you pass on something greater than you started with.”
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