The Troops are Coming Home: Effects on the VA Home Loan
With a projected 15,000 troops due home from Iraq by the end of the month, you can be sure there will be an increase in the demand for new housing. The question remains, how big will that demand for housing be?
This is all dependent on what jobs become available for our heroes as they return. Luckily, there are organizations such as Hire Heroes USA (HHUSA), which provide transition assistance for veterans moving back into civilian roles.
HHUSA is a non-profit organization with the goal of offering transition assistance, job search assistance, and job placement services to those who have honorably served in the US military, as well as their families, at no cost. HHUSA’s President is former Marine and current UFC fighter, Brian Stann. Stann was awarded the Silver Star for his great character, heroism, and endurance during a week-long barrage of attacks while seizing a bridge near Karabilah, Iraq in 2005.
Stann has not only teamed up with HHUSA, but has teamed up with Veteran’s United after using his own VA benefit through the company.
Even with the troops remaining in Iraq, last year the VA guaranteed nearly 360,000 loans, which is a 14-percent increase from 2010. Almost half of the loans were refinanced, which is up a whopping 41-percent from last year’s 121,000. The other 186,000 loans were for new home purchases, which is down 3.1 percent from 2010.
Last year’s surge in VA home loans can be attributed to record-low interest rates that have spurred renewed interest in the program. Military homeowners who purchased their home before the housing boom are looking to take advantage of the sub-4.0 percent interest rates.
Another major contributing factor to the push in VA home loans has been the consistently flexible qualifications. Many military borrowers lack the kind of credit score and money down needed for most conventional loans, which makes the VA home loan’s zero down option more valuable than ever.
VA Mortgage Center expects the upcoming months to be more important than ever as thousands of service members are expected to return from Iraq and Afghanistan.
“Many veterans will come home to an uncertain job market and will look to help from non-profits like Hire Heroes USA, while some will assimilate back into roles they held before service,” said Adrienne May, a military wife and community manager for VA Mortgage Center. “Either way, it will be business as usual for everyone here at VAMC.”
Matt Polsky is a mortgage commentator for VA Mortgage Center.com. VAMC Is the Nation’s leading provider of VA loans, securing over $1 Billion in VA Loan financing in 2010.
